PRIA Logo™
ArizonaHB 4160Fifty-seventh Legislature - Second Regular SessionHouseWALLET

health care; 2026-2027

Sponsored By: Sponsor information unavailable

Signed by Governor

2026-2027ahcccs (see also: arizona health care cost containment system)altcs (see also: arizona long-term care system)applicabilityarizona health care cost containment system (ahcccs)arizona long-term care system (altcs)arizona rural health transformation fundcountiescounty acute care contributionsdementia services programhealth carehealth insurance trust fund oversight boardlegislative intentmental health medication utilizationopioid settlement funds agreementpresumptive eligibilitypublic health and safety - title 36public officers and employees - title 38rulemaking exemption

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

9 provisions identified: 4 benefits, 2 costs, 3 mixed.

Stricter Medicaid checks and fewer on-the-spot approvals

The law tightens AHCCCS (Medicaid) eligibility checks through June 30, 2027. The state reviews death records, substantial lottery or gambling winnings, and other data to confirm eligibility. Starting January 1, 2027, redeterminations must also check state unemployment, job, and wage records. The state may not accept residency self‑attestation or rely on federal marketplace decisions without doing its own eligibility decision. The state seeks federal approval to limit hospitals’ on‑the‑spot Medicaid approvals mainly to children and pregnant women. Hospitals that give these temporary approvals must notify AHCCCS within five working days, help file a full application, and face sanctions for repeated errors.

Counties owe fixed 2026-2027 health payments

For FY 2026–2027, each county must pay set amounts for ALTCS and acute care. For example, Maricopa pays $298,895,000 for ALTCS and $14,417,300 for acute care; Pima pays $68,282,000 and $14,951,800. Counties pay one‑twelfth each month by the fifth day. If a county misses payments, the state treasurer can withhold other state money (not highway user funds) to collect. By December 31, 2027, AHCCCS must transfer any amounts needed to counties to meet the Affordable Care Act’s proportional‑share rule for that year.

State dementia plan and services program

The state health department leads work on Alzheimer’s and related dementias. It creates a dementia services program, convenes an advisory council, and updates the state plan. The updated plan must be published and submitted by June 30, 2027. This section ends June 30, 2027.

Hospital aid and rural health fund

For FY 2026–2027, the Arizona State Hospital receives $28,474,900 in disproportionate share payments and private qualifying DSH hospitals receive $884,800, with other DSH funds paid per law. The State Hospital must file its certification by March 31, 2027, and federal match goes to the state general fund. The state also creates a Rural Health Transformation Fund to hold federal monies. Before spending, the state must hold three public meetings and send a plan to the Joint Legislative Budget Committee.

New board over state employee health plans

The Health Insurance Trust Fund Oversight Board now approves state employee health benefits, premiums, copays, deductibles, and coinsurance. Starting with plan year 2028, the board must approve any contract over $3,000,000. The board aims for an 85% employer and 15% employee medical premium split by plan year 2035. With board approval, the state may self‑insure and contract directly with providers. Related actions receive legislative budget review.

Faster Medicaid rules and hospital assessments

For FY 2026–2027, AHCCCS can set service frequency and hour limits with a shorter process, but must give notice and at least 30 days for public comment. The agency also skips some rulemaking steps to implement the hospital assessment, retroactive to June 30, 2026. For Oct 1, 2026 to Sep 30, 2027, AHCCCS may keep the historical risk‑contingency and managed‑care administrative funding rules used in 2010–2011.

Pilot Medicaid coverage for traditional healing

AHCCCS may cover traditional healing services as a pilot in FYs 2026–2027, 2027–2028, and 2028–2029. Services must be delivered by or through urban Indian health organizations. Members must qualify under 42 C.F.R. 136.12. The pilot needs federal Section 1115 approval and ends December 31, 2029.

Local spending cap relief for opioid funds

Some county payments no longer count toward county spending limits. This includes county payments for Proposition 204 administration and competency restoration. For FY 2026–2027, if a county, city, or town exceeds its spending cap because it used Arizona opioid settlement funds, the penalty is cut by the dollars spent from those funds, down to $0.

Syringe help allowed; smoking gear ban

Starting December 31, 2026, cities, counties, and approved groups may run overdose and disease‑prevention programs. People can get free syringes, safe disposal, naloxone, education, and referrals to treatment. On the same date, local governments cannot use the final Arizona opioid settlement dollars to buy or fund safer smoking equipment.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • David Livingston

    28 • House

  • Julie Willoughby

    13 • House

  • Michael Carbone

    25 • House

  • Neal Carter

    15 • House

  • Steve Montenegro

    29 • House

Roll Call Votes

All Roll Calls

Yes: 32 • No: 4

House vote • 6/11/2026

THIRD: Passed

Yes: 24 • No: 4

House vote • 6/10/2026

C&P

Yes: 8 • No: 0

Actions Timeline

  1. Signed by Governor

    6/13/2026Governor

  2. Senate First Reading

    6/11/2026Senate

  3. Third Reading: Passed

    6/11/2026House

  4. Miscellaneous Motion: Passed

    6/11/2026House

  5. Third Reading: Passed

    6/11/2026House

  6. Committee of the Whole: do pass

    6/11/2026House

  7. House Second Reading

    6/10/2026House

  8. undefined: C&P

    6/10/2026House

  9. undefined: DP

    6/10/2026House

  10. House First Reading

    6/9/2026House

Bill Text

Related Bills

Back to State Legislation