Arizona Senate Approves Legislation To Expand Small-Business Health Insurance Program

Main Category: Health Insurance / Medical Insurance
Article Date: 21 Mar 2008 - 6:00 PDT

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The Arizona Senate on Tuesday approved legislation that would increase financial oversight and expand membership of Healthcare Group of Arizona, which insures roughly 23,000 self-employed residents or small-business employees, the Arizona Republic reports. The program was facing a more than $20 million deficit at the end of the last fiscal year, prompting lawmakers to freeze enrollment and allocate $8 million to help reduce the deficit.

The legislation would open the program to new members, but sole proprietors would no longer be eligible. The bill also would eliminate a provision of the program that requires companies to be uninsured for a minimum of six months before becoming eligible. In addition, the bill would increase financial oversight of the program by requiring regular financial reporting and actuarial oversight. Under the bill, enrollment growth of employer groups would be capped at 10% annually.

Some state lawmakers say that the bill does not do enough to address the program's financial problems. State Rep. Kirk Adams (R) has proposed a competing measure in the House that would establish a high-risk pool for people with serious health problems and tax incentives for small businesses to provide coverage to employees (Crawford, Arizona Republic, 3/19).

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