REFERENCE TITLE: appropriation; behavioral health provider rates

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1451

Introduced by

Senator Shope

AN ACT

Appropriating monies 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. Appropriation; Arizona health care cost containment system; behavioral health providers; reimbursement rate increase

A. The sum of $60,000,000 is appropriated from the state general fund in fiscal year 2026-2027 to the Arizona health care cost containment system for the purpose of providing a ten percent reimbursement rate increase for inpatient and outpatient behavioral health services to medicaid providers.

B. The reimbursement rate increase prescribed in subsection A of this section shall be applied as an increase to the provider reimbursement rates and is in addition to any existing or previously negotiated reimbursement rates paid by the Arizona health care cost containment system or any contracted medicaid health plan.

C. A contracted medicaid health plan may not offset, supplant or otherwise absorb the reimbursement rate increase prescribed in subsection A of this section by relying on existing negotiated rates that exceed the Arizona health care cost containment system fee-for-service reimbursement rates. The full reimbursement rate increase shall be passed through to behavioral health providers.

D. Reimbursement rate increases implemented pursuant to this section may not exceed applicable centers for medicare and medicaid services upper payment limits.

E. Monies appropriated pursuant to subsection A of this section shall be used solely for medicaid behavioral health provider reimbursement rate increases for inpatient and outpatient services and may not be reallocated, transferred or used to fund other service categories, administrative costs or programmatic purposes.