AZ SB1523

Repeals previous section 20-123 and creates new requirements for health care insurers offering individual plans, short-term limited duration insurance, or small employer group plans in Arizona.

Requires all health plans to cover ten categories of essential health care benefits (ambulatory services, emergency services, hospitalization, maternity care, mental health services, prescription drugs, rehabilitative services, laboratory services, preventive/wellness services, and pediatric services) with limited cost sharing.

Prohibits health care insurers from denying coverage based on health status, imposing preexisting condition exclusions, canceling plans due to health status, using health status to set premiums, or placing annual or lifetime dollar limits on essential health benefits.

Mandates coverage of adult dependent children until age 26 and requires no-cost coverage for preventive services recommended by the U.S. Preventive Services Task Force and Centers for Disease Control and Prevention.

Amends the definition of short-term limited duration insurance to clarify it is not subject to certain state health coverage mandates and requires insurers to provide notice before policy expiration.