ARIZONA STATE SENATE
Phoenix, Arizona
Purpose
Prevents insurers from denying liability for any loss due to the insured’s being intoxicated or under the influence of any narcotic with respect to a medical expense policy.
Background
Currently, health insurers may exclude coverage for losses incurred because the insured was under the influence of drugs or alcohol. This statute is based on a National Association of Insurance Commissioners (NAIC) model law. Because of the provisions in the law, hospitals and providers have strong financial disincentive to screen patients for substance abuse problems and they are more likely to go undiagnosed and untreated. The NAIC recently amended their model law to remove this exclusion, which is the basis for this measure.
S.B. 1005 prevents insurers from denying liability for any loss due to the insured’s being intoxicated or under the influence of any narcotic with respect to a medical expense policy.
According to the Department of Insurance, there is no fiscal impact to the state general fund. Insurers are already paying for drug or alcohol related injuries due to failure to screen, and it is possible that these entities may see a drop in costs due to individuals entering long-term treatment for addictions.
Provisions
1. Prevents insures from denying medical coverage when the loss is due to intoxicants or narcotics.
2. Defines medical expense policy.
3. Provides for a general effective date.
Amendments
Adopted by Committee
·
Exempts long term care policies from the requirements
in the bill.
Senate Action
BI 1/17/02 DP 6-0-0
BI 1/31/02 DPA 5-0-0-1
(Rereferred)
Prepared by Senate Staff
February 1, 2002,