Arizona enacted a continuation law in 2018. Beginning January 1, 2019, employers with fewer than 20 employees must offer continuation of health coverage to employees and their dependents.
The law mirrors the federal COBRA statute, except that COBRA allows employers to add a 2 percent administrative fee to premium payments, while small employers in Arizona will be able to charge a 5 percent fee. Also, while COBRA rights are triggered for persons covered under the plan before the qualifying event occurred, in Arizona, a plan enrollee doesn’t qualify for continuation coverage unless enrolled in the plan for at least 3 months before a qualifying event occurs (AZ Stat. Sec. 20-2330).