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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
Senate: ED DPA 7-0-0-0 | 3rd Read 27-1-2-0
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SB 1470: graduation; children with disabilities
S/E: AHCCCS enrollment freeze; appropriation
Sponsor: Senator Farnsworth, LD 10
Caucus & COW
Summary of the Strike-Everything Amendment to SB 1470
Overview
Lowers the Arizona Health Care Cost Containment System (AHCCCS) FY 2026 appropriation by a total of $108,000,000 and freezes enrollment for specified eligible persons. Transfers $75,000,000 from the Hospital Assessment Fund to cover the nonfederal share of the costs of the traditional Medicaid population.
History
Established in 1981, AHCCCS is Arizona's Medicaid program. It is a federal health care program jointly funded by the federal and state government that oversees contracted health plans for the delivery of health care services to individuals and families who qualify for Medicaid and other medical assistance programs. Through its contracted health plans, AHCCCS delivers health care to qualifying individuals including low-income adults, their children or people with certain disabilities. Current statute outlines covered health and medical services offered to AHCCCS members (A.R.S. § 36-2907).
In 2000, Arizona voters enacted Proposition 204, increasing Medicaid eligibility for residents up to 100% of the federal poverty level (FPL), including parents and childless adults. Proposition 204 also established the Arizona Tobacco Litigation Fund to fund the Medicaid expansion.
The Affordable Care Act (ACA) was passed by Congress in March 2010. The ACA expanded access to health insurance to various groups of the uninsured and extended Medicaid eligibility to individuals up to 133% FPL (Medicaid expansion population).
Laws 2013, First Special Session, Chapter 10 included provisions relating to the expansion of Medicaid. Included in the expansion is the increase in the income eligibility level for all children up to 133% FPL, childless adults up to 100% FPL and adults up to 133% FPL, instituting a hospital assessment for the benefit of providing health care for eligible persons, the requirement that AHCCCS pursue cost sharing requirements for members, a hospital transparency report, a notice to AHCCCS members that their enrollment may depend on federal financial participation and other provisions related to the expansion.
The Hospital Assessment Fund is an assessment on hospital revenues, discharges or beds days. The purpose of the fund is to cover the non-federal share of Proposition 204 services and the adult population who became eligible for AHCCCS services on January 1, 2014.
Provisions
1. Reduces AHCCCS's FY 2026 appropriation by the following amounts:
a) $2,000,000 from the state General Fund (GF) for a freeze on enrollment for persons who are eligible due to Medicaid expansion;
b) $31,000,000 from the state GF for a freeze on enrollment for individuals who are eligible due to Medicaid expansion under Proposition 204; and
c) $75,000,000 from the state GF. (Sec. 1)
2. Redirects $75,000,000 from the Hospital Assessment Fund to cover the nonfederal share of the costs of the traditional Medicaid population. (Sec. 1)
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6. SB 1470
7. Initials JB Page 0 Caucus & COW
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