AZ SB1035

Amends Arizona Revised Statutes section 20-2330 to require health benefits plans for small employers to allow enrollees and qualified dependents to continue coverage following qualifying events.

Employers must provide written notice within 30 days of a qualifying event, with notice presumed valid if postmarked within 44 days, informing enrollees of continuation rights, costs (including up to 5% administrative fee), and deadlines.

Enrollees have 60 days from notice to elect continuation coverage in writing and 45 days to submit the first premium payment; if employer fails to provide proper notice, enrollees have 120 days to elect coverage and pay premiums.

Continuation coverage lasts up to 18 months, ending upon failure to pay premiums, enrollee becoming eligible for Medicare/Medicaid, plan termination, or dependent child reaching age limit, with extensions possible for disabled dependents (11 additional months) or additional qualifying events (18 additional months).

Defines "small employer" as one employing an average of at least one but fewer than twenty eligible employees during the preceding calendar year.