This bill proposes to update current statutes by appropriating $60,000,000 from the state general fund for the fiscal year 2026-2027 specifically to enhance reimbursement rates for behavioral health services provided to Medicaid recipients. The bill stipulates a ten percent increase in reimbursement rates for both inpatient and outpatient services, which will be added to existing rates negotiated by the Arizona health care cost containment system and contracted Medicaid health plans.

Additionally, the bill includes provisions to ensure that the reimbursement rate increase is fully passed through to behavioral health providers without being offset by existing negotiated rates. It also establishes that these increases must comply with federal upper payment limits and mandates that the appropriated funds be exclusively used for the specified reimbursement rate increases, prohibiting their use for other purposes such as administrative costs or different service categories.