ARIZONA STATE SENATE
Phoenix, Arizona
health care services
organizations; services
(NOW: services; health care
services organizations)
Removes
“basic health care services” from statute while maintaining both the current
definition of basic health care plan in rule and the Department of Insurance’s
(DOI) ability to implement current and future legislation through the
rulemaking process.
Background
Following legislation that
transferred oversight of Arizona’s health care services organization (HCSO)
industry from the Department of Health Services (DHS) to the DOI, concern was
raised by the industry regarding the scope of the Director’s ability to set
and/or implement policy in the rulemaking process. S.B. 1330 was passed in 2000 and established DOI’s authority to
regulate HCSOs in Arizona. Currently,
part of an administrative rule that was in force under DHS remains in force
under DOI’s authority and is presumably expandable.
This measure maintains
current rulemaking abilities by the Director for implementation of legislation
regulating HCSOs. The measure ensures
that the Director maintains authority to engage the rulemaking process necessary
to implement legislation while removing statutory definitions of “basic health
care services.” The Senate recently
passed S.B. 1150, which was substantively identical to this measure.
There is no anticipated
fiscal impact to the state general fund associated with this measure.
1. Strikes definition of and references to “basic health care services.”
2. Clarifies the Director’s authority to determine the appropriateness of HCSOs in providing health care services and to adopt rules furthering implementation of legislation regulating the organizations.
3. Provides for a general effective date.
House Action
3rd Read 4/8/02 35-15-10-0
Prepared by Senate Staff
April 16, 2002