The proposed bill would update current statutes related to health care funding in Arizona, specifically for the Arizona Health Care Cost Containment System (AHCCCS) and the Arizona Long-Term Care System (ALTCS). It would require AHCCCS to transfer excess funds to counties, extend risk contingency rate settings for managed care organizations, and express legislative intent for AHCCCS to implement a Medicaid program in the FY 2026 budget. Additionally, the bill would specify county contributions for ALTCS, direct the State Treasurer to collect necessary differences in contributions, and ensure compliance with federal maintenance of effort requirements.
Moreover, the bill would establish Disproportionate Share Hospital (DSH) payments for FY 2026, detailing amounts for the Arizona State Hospital and qualifying private hospitals, and set forth requirements for AHCCCS regarding federal claims and financial participation. It would also mandate timely payments from counties for acute care contributions, with provisions for withholding funds if contributions are not met, and declare legislative intent for future adjustments based on economic indicators. Overall, these updates aim to align health care funding with the state's budgetary needs while ensuring compliance with federal regulations.