Senate Engrossed

developmental disabilities; provider increases

State of Arizona

Senate

Fifty-fifth Legislature

First Regular Session

2021

SENATE BILL 1355

AN ACT

Appropriating monies to the department of economic security.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Appropriations; department of economic security; intellectual and developmental disabilities; provider rate increases; reports

A. The following amounts are appropriated from the following sources in the following fiscal years to the department of economic security to provide reimbursement rate increases for services to individuals with intellectual and developmental disabilities:

1. $30,000,000 from the state general fund and $_________ in medicaid expenditure authority in fiscal year 2021-2022.

2. $____________ from the state general fund and $_____ in medicaid expenditure authority in fiscal year 2022-2023.

3. $_____________ from the state general fund and $_____ in medicaid expenditure authority in fiscal year 2023-2024.

B. The department of economic security shall use the fiscal year 2019-2020 rate rebase study and the most recent early intervention services rate rebase study required by section 36-2959, Arizona Revised Statutes, to provide reimbursement rate increases for all services provided to individuals with intellectual and developmental disabilities, including early intervention services, in fiscal years 2021-2022, 2022-2023 and 2023-2024 so that each service receives an increase in each of the three fiscal years.  The department shall ensure that all reimbursement rates for services provided to individuals with intellectual and developmental disabilities are at least one hundred percent of the benchmark rates by the end of fiscal year 2023-2024, including any adjustment needed to the benchmark rates to account for any increases in minimum wage in fiscal years 2021-2022, 2022-2023 and 2023-2024, and may exceed the benchmark rate as workforce issues are deemed necessary.  Before implementing provider rate increases, the department shall engage community stakeholders regarding the department's plans to increase provider rates.

C. On or before September 1 of each fiscal year, the department of economic security shall submit a report to the joint legislative budget committee describing the department's efforts to engage stakeholders and its plans to implement provider rate increases for fiscal years 2021-2022, 2022-2023 and 2023-2024.

Sec. 2. Intent

The Legislature intends that services to individuals with intellectual and developmental disabilities be funded at a level to ensure that quality and effective services are adequately available so that individuals who are eligible to receive state services are able to live their most independent life and are cared for by qualified direct care workers. Funding levels should be set so that a direct care worker's compensation reflects the wage assumptions contained in the first version of the 2019-2020 rate rebase study.