NM State Updates - 2015 Jan 07 No.01

On March 20, 2015, Gov. Martinez signed SB 121 into law, creating the Vaccine Purchasing Act. SB 121 authorizes the Arizona Department of Health to establish a statewide program that provides critical vaccines for children against life-threatening diseases and funds the program. Health insurers and group health plans will reimburse the Department of Health for the cost of vaccines provided to their participants.

Not later than 120 days following enactment, the Office of Superintendent of Insurance is to establish rules requiring each health insurer and group health plan to annually report the number of children it insured who were under the age of nineteen as of December 31st of the prior year. When the rules are released, we will report them in Compliance Corner.

Self-insured employers will be responsible for this reporting as well as reimbursing the Department of Health. Health insurance carriers will take care of the reporting and reimbursing on behalf employers with fully-insured plans, but will presumably pass the cost on to those plans through increased rates.

An insurer or group health plan that fails to file a required report will be subject to a late filing fee of $500 per day after the due date. The office of the superintendent of insurance has the power to request records supporting the above-mentioned report and if a discrepancy is not due to a good faith mistake, then a civil penalty of $500 will be due. Late reimbursements will also result in a $500 per day penalty.

This act goes into effect immediately.

SB 121 »