ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

 

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2966: health care; FY2026

Sponsor: Representative Livingston (with permission of committee on Rules), LD 28

Committee on Appropriations

Overview

Contains provisions relating to health care needed to implement the FY 2026 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.

Provisions

Arizona Health Care Cost Containment System (AHCCCS)

1.   Allows, for the contract year beginning October 1, 2025, and ending September 30, 2026, AHCCCS to continue the risk contingency rate settings for all managed care organizations (MCO) and funding for all MCO administrative funding levels that were imposed for the contract year beginning October 1, 2010, and ending September 30, 2011. (Sec. 7)

2.   Continues to state that it is the intent of the Legislature for FY 2026 that AHCCCS implement a program within its available appropriation. (Sec. 8)

County Session Law Provisions

3.   Sets the annual county Arizona Long Term Care System (ALTCS) contributions for FY 2026 at $409,537,600 and:

a)   outlines each county's contribution;

b)   requires the State Treasurer to recover the cost of any funding that was not provided; and

c) requires the State Treasurer to deposit monies received into the ALTCS fund.           (Sec. 1)       

4.   Requires the counties' share of the state's contribution to comply with federal maintenance of effort requirements. (Sec. 1)      

5.   Sets the FY 2026 county acute care contributions at $42,814,200 and:

a)   outlines each county's contribution;

b)   outlines payment processes and requirements;

c) requires the State Treasurer to recover the cost of any funding that was not provided by a county from other funds owed to that county, excluding the Highway User Revenue Fund; and

d)   states that the Legislature intends that the Maricopa County contribution be reduced in each subsequent year according to changes in the GDP price deflator. (Sec. 4)

6.   Continues to exclude Proposition 204 administration costs from county expenditure limitations. (Sec. 5)

7.   Continues to exempt county expenditures on Restoration to Competency treatment at ASH from county expenditure limitations. (Sec. 6)

Disproportionate Share Hospital (DSH) Payment Session Law Provisions

8.   Sets the annual DSH payment allotment to the Arizona State Hospital (ASH) at $28,474,900 for FY 2026 and:

a)   requires ASH to provide a certified public expense form for qualifying DSH expenditures made to AHCCCS by March 31, 2026;

b)   directs AHCCCS to:

i. assist ASH in determining the amount of qualifying DSH expenditures; and

ii.   deposit the entire amount of federal financial participation in the state GF;

c) states that if the certification is less than $28,474,900, AHCCCS must:

i. notify the Governor and the Legislature; and

ii.   deposit the entire amount of federal financial participation in the state GF; and

d)   requires the certified public expense form to contain the total amount of qualifying DSH expenditures and the amount limited by the Social Security Act. (Sec. 2)

9.   Establishes the annual DSH payment allotment for private qualifying DSH hospitals at $884,800 for FY 2026, consistent with the appropriation and the terms of the State plan and limits payments to hospitals that either:

a)   meet the mandatory definition of DSH qualifying hospital under Section 1923 of the Social Security Act; or

b)   are located in Yuma County and contain at least 300 beds. (Sec. 2)

10.  Outlines the order of priority for DSH payment allotments for private qualifying hospitals once the preceding DSH distributions are made. (Sec. 2)

11.  Requires, by December 31, 2026, for FY 2026, AHCCCS to transfer to the counties any portion necessary to comply with the Patient Protection and Affordable Care Act regarding the counties' proportional share of this state's contribution. (Sec. 3)

 

 

 

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                        HB 2966

Initials AG     Page 0 Appropriations

 

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