Senate Engrossed

AHCCCS; noncontracting providers; reimbursement

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1086

AN ACT

Amending title 36, chapter 29, article 1, Arizona Revised Statutes, by adding section 36-2905.05; relating to the Arizona health care cost containment system.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.1. Title 36, chapter 29, article 1, Arizona Revised Statutes, is amended by adding section 36-2905.05, to read:

START_STATUTE36-2905.05. Contractors; reimbursement; noncontracting providers; prohibitions

a. nOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY:

1. A contractor shall reimburse a noncontracting provider for laboratory services rendered to a member who is enrolled with the contractor if the member was referred by a contracted provider OF THE CONTRACTOR AT A RATE THAT IS NOT MORE THAN THE RATE THAT WOULD BE REIMBURSED TO A CONTRACTING PROVIDER.

2. A contractor may not require prior authorization for diagnostic services.

b. A contractor may not take or threaten to take retaliatory action against a contracted provider for referring a member to a noncontracted provider. END_STATUTE

Sec. 2.2. Legislative intent

The legislature intends to promote cost controls through competition and to avoid monopolistic practices that interfere with the free market.  Adequate oversight through rigorous audit practices is the alternative.