AZ SB1607

Establishes a Health Care Claims Consumer Assistance Program within the Arizona Department of Insurance to help consumers file complaints, appeals, and settle disputed claims with health insurers.

Authorizes civil penalties of at least $25,000 per violation when health insurers repeatedly wrongfully deny or insufficiently pay valid consumer insurance claims after receiving notice and opportunity to remedy.

Requires health insurers found to have wrongfully denied claims to automatically pay double the denied amount plus attorney fees, with additional damages possible for severe harm including loss of life, health, emotional distress, or financial harm.

Mandates health insurers disclose data on claims denials to the department, including numbers, percentages, and types of denied and wrongfully denied claims.

Appropriates $250,000 from the state general fund in fiscal year 2026-2027 to implement the program, with annual reporting requirements to the governor and legislature beginning May 1, 2027.