AZ SB1217

Repeals and replaces Arizona Revised Statutes Section 20-2330 to establish continuation coverage requirements for health benefit plans issued or renewed after December 31, 2018.

Requires small employers (1-20 eligible employees) to notify enrollees within 30 days of a qualifying event of their right to continue coverage at full cost plus an administrative fee not to exceed 5% of premium.

Allows enrollees and qualified dependents to elect continuation coverage within 60 days of notice and must submit first month premium within 45 days; coverage continues for up to 18 months unless earlier terminated by specified conditions.

Provides extensions to the 18-month continuation period: 11 additional months for dependents with Social Security-determined disability and an additional 18 months if a secondary qualifying event occurs during the initial period.

Defines qualifying events including voluntary/involuntary employment termination (excluding gross misconduct), divorce, death of enrollee, Medicare eligibility, and dependent child losing eligibility; excludes coverage available under federal COBRA or if enrollee is Medicare-eligible.