2016 Legislative Update

May 7th officially marked the end to the State’s legislative session. Although AHCCCS did not propose or advocate on behalf of any legislation, there were 1,247 bills introduced, 374 of which were signed into law. In terms of the state budget, the Legislature was able to come to an agreement on a $9.6 billion budget. Through this budget, AHCCCS was granted $11.4 billion in total appropriation and expenditure authority. Below are key highlights from this year’s legislative session:

 

  1. The list of covered services is expanded to include ALTCS dental services (DD/EPD)up to an annual amount of $1,000 per member, as well as podiatry services performed by a Podiatrist and ordered by a primary care physician or primary care practitioner;
  2. The KidsCare enrollment cap was removed pending CMS approval;
  3. 340B drug pricing requirements are effectuated beginning 1/1/17, or on approval by CMS.  However, licensed hospitals and outpatient facilities that are owned or operated by a licensed hospital are exempt from the 340B provisions until the technological feasibility and costs of applying these provisions can be determined through an official report, due on or before 11/1/16;
  4. The Delivery System Reform Incentive Payment (DSRIP) fund was established;
  5. Laws 2015, Chapter 14, Section 26, has been repealed, in effect allowing capitation rate growth to exceed 1.5%; and
  6. An AHCCCS designee was assigned to the study committee regarding incompetent, nonrestorable and dangerous defendants.

A full and detailed Legislative Summary Report is available at https://www.azahcccs.gov/Resources/Downloads/Legislation/sessions/2016LegislativeSummary.pdf.

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