AZ SB1378

Adds new subsection O allowing state employees who do not participate in the state health insurance coverage to purchase private individual or family health and accident coverage instead.

Requires the department of administration to pay directly to the private insurance provider the same amount the employee would have received under the state appropriation for health insurance purposes.

Directs any excess payments that exceed the actual private health insurance premium to be deposited into a qualified health savings account for the employee.

Maintains existing definitions of "dependent" to include spouses, children under 19, and full-time students under 23 years of age, effective October 1, 2009.