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Arizona - Compensation & Benefit Legislation

ARIZONA - AASHOWME

Demonstrates www.BenefitsReview.com™. Illustrates insurance carriers' coverages within the State.

 

ARIZONA - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

 

Mandatory coverage of birth of adopted children is included in state's newborn health care mandate, if adopted within 1 year of birth, if insured is legally obligated to pay costs of birth, and if maternity benefits are covered. State statute does not provide for minimum levels of coverage or preventive care. (Arizona Rev. Stat. Ann. Sections 20-1402,20-1407)

 

ARIZONA - ALCOHOLISM & DRUG ABUSE

See GROUP HEALTH CODE ADDITIONS (MANDATED) (below).

 

ARIZONA - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: No. Follows FUTA.

 

ARIZONA - CONTINUATION OF COVERAGE CONVERSIONS

State reports no statutory requirements.

 

ARIZONA - COORDINATION OF BENEFITS

Requires use of the birthday rule if coordinating benefits (effective 1/1/87). Based on 1984 National Association of Insurance Commissioner Rules model. (Arizona Admin. Comp. R. 4-14-217)

 

ARIZONA - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

 

ARIZONA - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

Who is Covered by Statute: All private employers.

 

Applicant Testing: Applicant testing is allowed.

 

Employee Testing: Employer may require the collection and testing of samples for any job-related purposes consistent with business necessity.

 

How Test Results are Used: Test results may be used by employer to take adverse employment action against employee or applicant.

 

Enforcement of Statutes: State has no statutory requirements.

 

Employee Remedies: Causes of action for defamation of character, libel, slander, and damage to reputation are available if information disclosed was a false positive result, the positive result was disclosed negligently, and all other elements of causes of action are satisfied.

 

Employer Penalties: State has no statutory requirements.

 

Who Pays for Testing? Employer shall pay all actual costs for drug and alcohol impairment testing. Employer may, at its discretion, pay the costs for drug testing of prospective employees.

 

Employee Assistance Benefits: State has no statutory requirements.

 

Other Requirements: Testing for presence of drugs shall be carried out within the terms of a written policy that has been distributed to every employee.

 

(Arizona Rev. Stat. Ann. Sections 23-493.01-23-493.11)

 

ARIZONA - GROUP HEALTH CODE ADDITIONS (MANDATED)

Alcohol and Drug Abuse Treatment: Benefits must be covered whether provided in a psychiatric or general hospital. (Arizona Rev. Stat. Ann. Section 20-1406(C))

 

Breast Reconstruction, Prostheses, and Mammography Screening: Costs must be covered if surgical services for mastectomy are covered. (Arizona Rev. Stat. Ann. Sections 20-826(H), (I), - 934(F), (G), - 1057(I), -1402(A)(5)-(6))

 

Child Support: If an employer is required under a court child support order to provide health insurance coverage for an employee's child, the employer must enroll the child in family coverage without regard to any enrollment season restrictions. Exceptions to this enrollment requirement are if the order has expired, the child is enrolled in comparable coverage under another insurer, the employer eliminates all family coverage, or the premiums are unpaid. (Arizona Rev. Stat. Sections 12-2482, 20-1692)

 

Coverage Conversion: Disability policies must provide conversion rights to employees and dependents leaving the group or ceasing to be eligible because of age, death, or dissolution of marriage. (Arizona Rev. Stat. Ann. Sections 20-1057(M), - 1377(A), -1408(A))

 

Disclosure Form: Health care services organizations offering plans to the public must provide disclosure forms which shall include a separate roster of plan primary care physicians; the full premium cost of the plan; any co-payment, coinsurance, or deductible requirements that an enrollee or the enrollee's family may incur in obtaining coverage under the plan and any reservation by the plan to change premiums; the health care benefits to which the enrollee would be entitled; any limitations of services; grievance procedures; whether a plan physician is restricted to prescribing drugs from a plan list or plan formulary and the extent to which an enrollee will be reimbursed for costs of a drug that is not on a plan list or plan formulary; and a statement that the disclosure form is a summary only. (Arizona Rev. Stat. Ann. Section 20-1076(A)) Upon request, the health care services organization shall provide the required information to all employers that are considering participating in the health care plan or are considering renewal of an existing plan. Employers must provide the required disclosures to eligible employees no later than the initiation of the open enrollment period or at least 10 days before any employee enrollment deadline not associated with an open enrollment period. (Arizona Rev. Stat. Ann. Sections 20-1076(C), (D))

 

Domestic Violence: Insurers must not deny, limit, refuse to renew, or cancel coverage to individuals on the basis that they have been victims of domestic violence; insurers also may not charge such individuals different rates for the same coverage. (H2236, 1996) (Arizona Rev. Stat. Ann. Section 20-448)

 

Handicapped Dependents: Coverage for dependent children cannot be terminated while a child is incapable of employment due to mental retardation or physical handicap and chiefly dependent on the insured. (Arizona Rev. Stat. Ann. Sections 20-826(F), - 1342.01, -1407)

 

Home Health Care: Policies must cover costs for home health care provided in lieu of covered hospital services. (Arizona Rev. Stat. Ann. Sections 20-826(C), -934(C)(2), -1342(A)(8)(b), -1402(A)(4)(b), -1404(F)(2))

 

Hospital Outpatient or Freestanding Surgical Facility: Costs must be covered if services are covered on an inpatient basis. (Arizona Rev. Stat. Ann. Sections 20-826(C), -934(C)(4), -1342(A)(8)(d),-1402(A)(4)(d), -1404(E)(4))

 

Maternity Services Related to Birth of Adopted Child: Costs must be covered if maternity benefits are provided and if certain conditions are met. (Arizona Rev. Stat. Ann. Sections 20-826(J), -934(H), -1057(K), - 1342(A)(11), -1402(A)(7), -1404(I))

 

Mental Health: In psychiatric special hospitals, the costs of psychiatric, drug abuse, or alcoholism services must be covered if such services rendered in a general hospital are covered. Benefit insurer contracts (except accidental death and dismemberment contracts) covering childhood and adolescent psychiatric services must cover the costs of such services rendered by a psychiatric special hospital. (Arizona Rev. Stat. Ann. Sections 20-841(C), -934(D), (E), -1057(C), -1376(C), -1406(C))

 

Newborns: Policies providing family coverage must cover newborn children from the moment of birth for injury or sickness including treatment for congenital defects and birth abnormalities. (Arizona Rev. Stat. Ann. Sections 20-826(E), -934( C), -1057(B), -1342(A), - 1402(A)(2), -1404(E))

 

Physician Diagnostic Services Performed Outside Hospital: Costs must be covered if services are covered on inpatient basis. (Arizona Rev. Stat. Ann Sections 20-826(C), -934(C)(3), -1342(A)(8)(c), -1402(A)(4)(c), -1404(F)(3))

 

Policies For Small Employers: Accountable health plans must offer a basic health plan to small employers that have not provided a health benefit plan to its employees for at least 90 days immediately before applying for coverage. Also, in 50 percent of its working days during the preceding calendar quarter, the small employer must have employed 25-40 eligible employees, the majority of whom were employed in Arizona. Beginning July 1, 1996, small employers must have employed three to 40 eligible employees, the majority of whom were employed in Arizona. Other eligibility requirements remain the same. The accountable health plan shall provide a basic health benefit plan to each qualified small employer without regard to health status or claims experience if the small employer agrees to make premium payments and to satisfy any other reasonable provisions. Coverage must be offered to all eligible employees of the small employer and their dependents. An accountable health plan is one that offers, issues, or otherwise provides a health benefit plan approved by the state Director of Insurance. A health benefits plan is an arrangement providing health services or health benefits to three or more individuals. Such a plan does not include: Accident only, dental only, vision only, disability only, or long-term care only insurance, fixed or hospital indemnity, limited benefit, specified disease, credit or Taft-Hartley trusts; supplemental liability insurance; Medicare supplemental insurance; workers' compensation insurance; and automobile medical payment insurance. (Arizona Rev. Stat. Ann. Sections 20-2301(1),(5)(a)-(e); §§ 20-2304(A),(C)) Qualified small employers may be denied coverage under certain conditions. (HB2146, 1995)

 

Providers: Podiatrists, dentists, chiropractors, optometrists, psychologists, and registered nurse practitioners: Costs for services must be covered if the provider is licensed, the service is within the provider's scope of services, and the service is covered by the policy. (Arizona Rev. Stat. Ann. Sections 20-841 to 841.03, -1376 to 1376.03, -1406 to 1406.03)

 

ARIZONA - GROUP HEALTH FOR SMALL EMPLOYERS

See GROUP HEALTH CODE ADDITIONS (MANDATED) (above).

 

ARIZONA - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: Yes.

 

Percent of employees who must elect coverage (if employees pay part of premium): 75%.

 

Percent of employees who must be covered if employer pays all of premium: 100%.

 

Minimum number of employees in group plan: 10.

 

Employer prohibited as beneficiary: Yes.

 

Grace period (days): 31. Mandatory conversion: Yes.

 

Other provisions: none. (Arizona Rev. Stat. Ann. Sections 20-1252, 20-1259, 20-1266)

 

ARIZONA - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Columbus Day (or 2nd Monday in October), Thanksgiving, Sunday. Other: If any holiday falls on Sunday, following Monday is a holiday (except Mother's, Father's, Family, and Constitution Days and Sundays.) If January 1, July 4, November 11, or December 25 falls on Saturday, preceding Friday is a holiday. (Arizona Rev. Stat. Ann. Section 1-301, 1-304, 1-306)

 

ARIZONA - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

 

ARIZONA - JURY DUTY & WITNESS TIME OFF

Employer Restriction For Discharging Employee For Taking Leave For Jury Service: Yes.

 

Remedies And Penalties: Violator is guilty of a Class 3 misdemeanor.

 

Other Requirements: Employer is not required to pay employee for time spent in jury service. (Arizona Rev. Stat. Ann. Section 21-236)

 

Employer Restriction For Discharging Employee For Taking Leave To Be A Witness: State reports no statutory requirements.

 

ARIZONA - LEAVES OF ABSENCE

State reports no statutory requirements.

 

See U.S. Federal Family and Medical Leave Act

 

ARIZONA - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

 

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

 

ARIZONA - MANDATED PROVIDERS

Optometrists, chiropractors, dentists, psychologists, podiatrists, and nurse practitioners. (Arizona Rev. Stat. Ann. Sections 20-1406, 20-1406.01, 20-1406.02, 20-1406.03, 32-801, 32-1201)

 

ARIZONA - MENTAL HEALTH CARE

State reports no statutory requirements.

 

ARIZONA - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

 

State reports no statutory requirements.

 

(Arizona Rev. Stat. Ann. Sections 23-313, 23-316, 23-317, 23-326. State has no comprehensive minimum wage law. Minimum wages set by wage board for any substantial number of minors who have been paid "oppressive and unreasonable wages.")

 

See U.S. MINIMUM WAGE

 

ARIZONA - NEW HIRE REPORTING

Who is required to report: All employers.

 

Who must be reported: New employees and rehires.

 

Exempt from reporting: Employees working less than 22 hours per week for 6 months; employees earning less than $300 per month.

 

Form(s) to file: State form. Information may be submitted via mail, magnetic tape, telefax, or any other means authorized by the State.

 

 

Filing deadline: Within 20 days of hire.

Employer information to be included: Name, address, and federal EIN.

 

Employee information to be included: Name, address, SSN, and date of birth.

 

Penalty for failure to report: None reported

 

(Arizona Rev. Stat. Ann. Section 23-722.01 as amended by Senate Bill No. 1420)

 

ARIZONA - NEWBORN CARE MANDATE

Mandated coverage. State statute does not provide for minimum levels of coverage or preventive care. (Arizona Rev. Stat. Ann. Sections 20-1402,20-1407)

 

ARIZONA - OVERTIME COMPENSATION REQUIREMENTS

State reports no statutory requirements.

  

ARIZONA - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act and LEAVES OF ABSENCE (above).

 

State reports no specific statutory requirements for Parental Leave.

 

ARIZONA - PRE-EXISTING CONDITIONS

Insurer may not exclude coverage of a condition for which insured has previously tested negative. (Arizona Rev. Stat. Ann. Sections 20-448, 20-2501 et. seq.)

 

See GROUP HEALTH FOR SMALL EMPLOYERS (above) and U.S. Federal HEALTH INSURANCE PORTABILITY & ACCOUNTABILITY ACT

 

ARIZONA - PROTECTED CLASSIFICATIONS

Age:  Yes, age 40 and over.

 

Race:   Yes.

 

Color:  Yes.

 

National Origin:  Yes.

 

Ancestry:  No specific law. State has expressed policy against discrimination.

 

Religion:  Yes.

 

Sex:  Yes.

 

Pregnancy:  No specific law. State has expressed policy against discrimination.

 

Sexual Harassment:  No specific law. State has expressed policy against discrimination.

 

(Arizona Rev. Stat. Ann. Sections 41-1461, 41-1463, 41-1465.)

 

ARIZONA - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

 

ARIZONA - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

 

ARIZONA - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Earlier of payday or 3 days.

 

Date due if employee resigns: Payday.

 

Wages: Yes. Wages defined to include severance, commissions, bonuses, and other amounts promised when employer has practice of making these payments.

 

Vacation Pay: Yes.

 

Holiday: No.

 

Sick leave: Yes.

 

Severance: Yes. Wages defined to include severance when employer has practice of making these payments.

 

(Arizona Rev. Stat. Ann. Sections 23-350, 23-353)

 

ARIZONA - UNEMPLOYMENT TAX

Employer Contributions:

 

Voluntary Contribution Provision: Yes. Payment made before January 31 is credited to account as of most recent computation date of employer's liability.

 

(Arizona Rev. Stat. Ann. Sections 23-726 through 23-730).

 

ARIZONA - VACATION PAY

See TERMINATION & SEVERANCE PAY (above).

 

ARIZONA - VOTING TIME OFF

Yes. If employee does not have 3 hours before the beginning or after the end of shift while the polls are open, employee may take as much time at beginning or end of work shift that, when added to time available outside working hours, will give employee 3 consecutive hours in which to vote. (Arizona Rev. Stat. Ann. Sections 16-402, 16-1013, 16-1014)

 

ARIZONA - WORKERS' COMPENSATION

Private Employers: Mandatory as to all employments. Elective for working partners. Employee may reject coverage.

 

Public Employers: Mandatory as to state, counties, cities, towns, municipal corporations, school districts, and volunteers enumerated by statute.

 

Exceptions: Domestic servants, casual employees, and real estate licensees.

 

Special Coverage Provisions: Voluntary as to sole proprietors and employers of domestic servants. Motion picture business employers and employees may be exempted from law provided equal benefits are provided by insurance in domicile state.

 

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)