I often get asked about health insurance for special districts.  ARS 38-656 is the definition of the Optional Inclusion into the State health and accident insurance coverage.

38-656. Optional inclusion of city, town, county, special taxing district, authority, public entity and community college district employees in state health and accident coverage; payment of premiums; advance notice; minimum period of participation; definition

A. If a governing body of a city or town, a county board of supervisors, a community college district governing board, a special taxing district, an authority or any public entity organized pursuant to the laws of this state determines that state health and accident insurance coverage is necessary or desirable and in the best interest of its employees, it may provide for inclusion of its employees and spouses and the dependents of its employees in state health and accident insurance coverage pursuant to section 38-651.

B. If a governing body of a city or town, a county board of supervisors, a community college district governing board, a special taxing district, an authority or any public entity organized pursuant to the laws of this state elects to participate in the state health and accident insurance coverage, it shall be the only health and accident insurance coverage offered to the city's, town's, county's, district's, special taxing district's, authority's or public entity's employees.

C. A governing body of a city or town, a county board of supervisors, a community college district governing board, a special taxing district, an authority or any public entity organized pursuant to the laws of this state that elects to include its employees in the state health and accident insurance coverage shall notify the department of administration of its intention to do so by January 15 prior to the year in which the city's, town's, county's, district's, special taxing district's, authority's or public entity's employees would be eligible to receive state health and accident insurance coverage.

D. A governing body of a city or town, a county board of supervisors, a community college district governing board, a special taxing district, an authority or any public entity organized pursuant to the laws of this state that elects to include its employees in the state health and accident insurance coverage shall participate in state health and accident insurance coverage for at least two years.

E. A governing body of a city or town, a county board of supervisors, a community college district governing board, a special taxing district, an authority or any public entity organized pursuant to the laws of this state that opts to participate in the state health and accident insurance coverage shall agree to accept the benefit level, plan design, insurance providers, premium level and other terms and conditions determined by the department of administration and shall accept any other contractual arrangements made by the department of administration with health and accident insurance providers.

F. A governing body of a city or town, a county board of supervisors, a community college district governing board, a special taxing district, an authority or any public entity organized pursuant to the laws of this state shall reimburse the department of administration for administrative and operational costs associated with the city's, town's, county's, community college district's, special taxing district's, authority's or public entity's participation in the state health and accident insurance coverage determined pursuant to section 38-651, subsection K.

G. As used in this section, "state health and accident insurance coverage" means the health and accident coverage procured by the department of administration under section 38-651.