HB2139 Summary

• Authorizes the Arizona State Retirement System (ASRS) board to establish a self-insurance program for group health and accident coverage if determined to be less expensive and as effective as fully insured plans.

• Requires ASRS to maintain a separate account for any self-insurance program with funds used only for providing benefits, administration costs, and premium payments, with remaining funds returned to the employer after liabilities are satisfied.

• Allows the self-insurance program account to be used to pay premium payments under section 38-783 in addition to direct benefit administration.

• Expands health coverage eligibility to include members of the public safety personnel defined contribution retirement plan and elected officials' defined contribution retirement system.

• Clarifies that account assets cannot be diverted for other purposes and establishes procedures for terminating self-insurance programs and distributing remaining funds.