This bill proposes to amend the Arizona Revised Statutes by adding a new Article 3.1 to Title 36, Chapter 29, which focuses on the procurement and contracting processes for the Arizona Health Care Cost Containment System (AHCCCS). The new provisions will establish a performance-based procurement model that evaluates contractors based on objective, measurable operational performance over a defined multi-year period, starting from October 1, 2026. The bill outlines specific definitions related to contracting, such as "incumbent contractor," "nonincumbent contractor," and "operational readiness," and mandates that all contractor selection and evaluation processes adhere exclusively to this new framework, eliminating the use of requests for proposals or similar solicitations.

Additionally, the bill emphasizes the importance of transparency and fairness in the contracting process by requiring the establishment of a standardized performance rubric and the adoption of rules that govern enrollment procedures and contractor evaluations. It also stipulates that contracts will operate on a four-year performance period, with decisions regarding contract continuation or termination based solely on performance outcomes. The bill aims to enhance competition and accountability within the AHCCCS by ensuring that contracting practices do not restrict access to care and that all contractors are treated equitably. Overall, the proposed changes seek to create a more efficient and effective managed care contracting system in Arizona.