Medical & virtual care
HMO/EPO/PPO/HDHP designs with integrated telehealth (virtual PCP, urgent care, behavioral health). HDHPs pair with HSAs for pre-tax savings.
Employee Benefits • Arizona • 2026 
Employee Benefits Arizona — 2026 Group Medical, Dental, Vision, Life/AD&D, Disability & Tax-Advantaged Accounts
Build an Arizona benefits package employees actually use—medical, dental, vision, life/AD&D, STD/LTD, and HSA/HRA/ICHRA/QSEHRA—while staying compliant with Arizona small- and large-group rules. We compare carriers, networks, plan designs (HMO/EPO/PPO/HDHP), and funding models (fully-insured vs. level-funded/ASO vs. ICHRA), then handle onboarding, payroll deductions, and renewals. If you’re searching “near me,” our local/virtual help covers the metros listed below.
Quick facts — Arizona (2026)
| Topic | What to know |
|---|---|
| Small employer (AZ) | Arizona law defines small employer as generally 2–50 eligible employees on a typical business day during the year (carrier eligibility rules still apply). |
| Guaranteed issue (small group) | ACA/HIPAA protections apply in the small-group market (issuers apply standard eligibility & enrollment rules). |
| Waiting period (federal) | Employer plan waiting periods may not exceed 90 days. |
| State continuation (mini-COBRA) | For small employers (typically fewer than 20 employees) on insured plans, Arizona continuation generally allows up to 18 months of coverage for eligible enrollees. |
| Telehealth parity (insured plans) | Arizona law establishes payment parity for telehealth vs. in-person services on applicable insured plans; self-funded ERISA plans follow federal rules/plan documents. |
| Funding models | Fully-insured, level-funded/ASO, ICHRA (any size), QSEHRA (<50 FTEs, no group plan). |
| Effective dates | Groups can start any month; carriers set initial and annual open enrollment processes. |
Notes: State mandates generally apply to insured plans. Self-funded (ERISA) plans follow federal rules unless they choose to mirror state provisions.
Plan & funding options at a glance
We’ll map your workforce (locations, networks, risk tolerance) and compare total-year cost projections—not just month-one premiums.
| Option | How it works | Best for | Consider |
|---|---|---|---|
| Fully-insured (HMO/EPO/PPO/HDHP) | Predictable premiums; robust network choices; HDHP pairs with HSA | Employers wanting stability and simpler admin | Less claims transparency; renewal adjustments |
| Level-funded / ASO | Claims-based funding with stop-loss; potential surplus refunds | Groups with stable risk and good participation | Variable costs; requires strong compliance/reporting |
| ICHRA | Employer sets tax-free allowance; employees buy individual coverage | Multi-site or variable-hour teams; recruiting flexibility | Member experience depends on local individual market & guidance |
| QSEHRA | For <50 FTEs without a group plan; reimburse within federal caps | Very small employers needing predictable budgets | Annual caps; coordinate with APTC rules & MEC requirements |
Common benefits & add-ons
Dental & vision
Dental PPO/DHMO and vision with hardware allowances. Bundling medical+dental+vision may unlock multi-line discounts and single-bill admin.
Life/AD&D & disability
Employer-paid basic life with buy-up options; STD/LTD to protect income. Consider portability/conversion and pre-existing condition provisions.
Accounts & reimbursements
HSA, LPFSA/FSA, HRA, ICHRA, and QSEHRA to tune tax efficiency and choice.
Costs, employer contributions & savings
Rates reflect region, ages, network, plan design, claims history (where applicable), participation, and contribution strategy. Optimize for total value, not just sticker premium.
| Driver | What influences cost | How to save |
|---|---|---|
| Funding model | Fully-insured vs. level-funded/ASO vs. ICHRA/QSEHRA | Quote all three; align to risk tolerance & cash-flow |
| Network & design | HMO/EPO vs. PPO; HDHP/HSA and copay vs. coinsurance tiers | Map members to providers before choosing network |
| Participation | Minimum enrolled after valid waivers | Offer employer-paid base + buy-ups to lift take-up |
| Contribution policy | Employer % or fixed dollar; composite vs. age-banded | Set simple, equitable rules; audit waivers annually |
| Virtual care | Telehealth utilization & care navigation | Promote first-call virtual PCP/behavioral pathways |
Eligibility, participation & enrollment
Rules vary by carrier and line of coverage. We’ll verify specifics for your business before setting effective dates.
| Topic | Typical rule | What we verify | Pro tip |
|---|---|---|---|
| Employer size | 2–50 for small-group medical; 51+ is large group | Common-law employees; controlled-group status | Keep clean payroll & org docs for underwriting |
| Waiting period | Max 90 days from eligibility to enrollment | Orientation period & measurement/stability for variable-hour staff | Time eligibility to reduce gaps for new hires |
| Participation | Carrier minimums after valid waivers | Eligible vs. ineligible classes; probationary periods | Use employer-paid base + voluntary buy-ups to lift participation |
| Continuation | Arizona mini-COBRA up to 18 months (insured small groups) | Which law applies (COBRA vs. state) | Publish simple off-boarding & notice timelines |
| Effective dates | Usually 1st of month; year-round starts possible | Binder payment & census completeness | Align medical+dental+vision renewals for admin ease |
Local service areas & licensed states
Arizona metros we serve
- Phoenix • Scottsdale • Mesa • Chandler • Gilbert • Tempe
- Glendale • Peoria • Surprise • Goodyear • Buckeye
- Tucson • Oro Valley • Marana • Sierra Vista
- Flagstaff • Prescott/Prescott Valley • Yuma
Licensed states
Virtual/local appointments available in:
AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV
What to have ready
- Employee census (names, ZIPs, ages, eligibility)
- Preferred providers & any current plan documents
- Target contribution strategy & effective date
Arizona employee benefits — FAQs
How does Arizona define a small employer for group medical?
Arizona statutes commonly define a small employer as one with 2–50 eligible employees on a typical business day during a calendar year (carrier eligibility rules still apply).
Can we begin our group plan any month?
Yes. Groups frequently start on the first of any month. Carriers include initial and annual open enrollment processes.
What are Arizona continuation rules vs. COBRA?
Federal COBRA applies to most employers with 20+ employees (generally up to 18 months). For smaller insured groups, Arizona mini-COBRA generally allows up to 18 months of continuation if eligibility criteria are met.
Is telehealth covered on Arizona employer plans?
Yes for insured plans—Arizona law establishes payment parity for telehealth vs. in-person services. Self-funded ERISA plans follow federal rules and their plan documents.
Should we consider ICHRA or QSEHRA instead of a traditional group plan?
Often worth modeling. ICHRA works for any size employer and supports multi-location hiring; QSEHRA suits <50 FTEs that don’t offer group coverage. We’ll compare alongside fully-insured/level-funded options.
Disclosure
Independent agency: Blake Insurance Group LLC compares multiple carriers to align Arizona group benefits with your workforce and budget.
Brand ownership: All product/brand names are trademarks of their owners. Availability, benefits, and eligibility vary by carrier and state.
Licensing: Licensed insurance producer (NPN 16944666). Licensed in the states listed above.
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Blake Insurance Group
Phone: (888) 387-3687
Email: info@blakeinsurancegroup.com
Hours: Mon-Fri 9:00 am to 5:00 pm
Sat-Sun: Closed
Blake Nwosu
Owner & Principal Agent