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Arizona Health Care Cost Containment System - Healthcare Group Program

Report

The Healthcare Group (HCG) program’s administrative costs are about 8.5 percent of the program’s total costs. While no universal standard exists for the amount of financial reserves insurance companies should have, HCG’s efforts to determine reserves and ensure overall financial stability appear to be in-line with insurance industry practices. Finally, HCG is enforcing the requirement that employers be without group healthcare coverage for 180 days before enrolling in HCG.

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