All Roll Calls
Yes: 120 • No: 112
ArizonaSB 1741Fifty-seventh Legislature - First Regular SessionSenateWALLET
2025-2026; health care
Sponsored By: Sponsor information unavailable
Signed by Governor
2025-2026adoa (see also: department of administration)ahcccs (see also: arizona health care cost containment system)ahcccs transferaltcs (see also: arizona long-term care system)apache county (h)applicabilityappropriating moniesarizona health care cost containment system (ahcccs)arizona long-term care system (altcs)arizona nurse education investment pilot programarizona state board of nursing (h)budget billsbudget reconciliationclinical rotation program (h)cochise county (h)coconino county (h)collaborative care uptake fundcommitteecompetency restorationcomplete care contractscountiescounty acute care contributionscounty contributionscounty expenditure limitationscovered health and medical servicesdefinitionsdelayed repealdepartment of administration (adoa)department of health services (dhs)dhs (see also: department of health services)dialysis servicesdisproportionate share paymentsexclusionexemptionextensionfederal moniesfeefiscal year 2025-2026fundgila county (h)graham county (h)grantgrant programgrantsgreenlee county (h)health carehospital interoperabilityimplementation of programintentla paz county (h)legislative findingslegislative intentlong-term care system servicesmaricopa county (h)mental health medication utilization (h)modificationsmohave county (h)navajo county (h)newborn screening programnotificationpima county (h)pinal county (h)proposition 204 administrationpublic health and safety - title 36related delivery of service requirementsrepealrepealingreport of blood testsreportsretroactivityrisk contingency rate settingrulessanta cruz county (h)student registered nurse anesthetists (h)technical assistancetechnology solutiontransfer of moniesuse of moniesyavapai county (h)yuma county (h)
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Bill Overview
Analyzed Economic Effects
15 provisions identified: 11 benefits, 1 costs, 3 mixed.
Health coverage before release from custody
The law requires Arizona Medicaid to implement limited health coverage for eligible incarcerated people and committed youth before release. Coverage reaches up to 90 days immediately before the expected release date. It covers eligible people in prisons, jails, secure care facilities, and tribal correctional facilities. Coverage depends on available funding and federally approved terms.
Traditional healing coverage for tribal members
Arizona Medicaid adds traditional healing coverage for members who qualify for Indian Health Service or tribal facility services. Care must come by or through one of those facilities. Long-term care coverage applies to members determined to need institutional services. Coverage depends on available funding and federally approved terms. The law also recognizes tribal-organization-run facilities authorized under Public Law 93-638, including for children's health coverage.
Counties must fund long-term care
For fiscal year 2025–2026, counties must pay these amounts toward Arizona's long-term care system: Apache $707,000; Cochise $7.5101 million; Coconino $2.1227 million; Gila $3.1738 million; Graham $2.3394 million; Greenlee $66,900; La Paz $828,800; Maricopa $275.2016 million; Mohave $10.4382 million; Navajo $2.9266 million; Pima $63.7297 million; Pinal $17.0943 million; Santa Cruz $2.9499 million; Yavapai $7.8086 million; and Yuma $12.64 million. The treasurer must collect additional county shares if system costs exceed the state budget amount, subject to federal funding-maintenance rules. Available state payments can be withheld, except highway user revenue distributions. These are county obligations, not direct bills to residents.
More practitioners can order home care
Arizona-certified nurse practitioners, clinical nurse specialists, and physician assistants can order home health and licensed health aide services. This applies to eligible long-term care members. Services must still meet care-plan and other program requirements.
Newborn screening adds Duchenne muscular dystrophy
Arizona requires newborn screening for Duchenne muscular dystrophy. The screening requirement applies on the earlier of October 1, 2027, or two years after federal screening-panel inclusion. When the state changes newborn screening fees, covered insurers, Arizona Medicaid, and its covered contractors must update related hospital rates within 60 days. The law specifies no fee amount or direct household charge.
Small practices get mental health grants
The Collaborative Care Uptake Fund continues grants to help primary care practices add coordinated mental health care. Physician applicants must work in practices with 50 or fewer employees. Technical assistance grants also continue; applicants must explain how they will provide the required help. The fund is continuously available for spending, with no more than 3% used for administration. The program ends after June 30, 2027, and unspent money returns to the state general fund.
Counties gain room under spending limits
County contributions for competency restoration no longer count against county spending limits. Specified county contributions for Proposition 204 administrative costs are also excluded. These changes affect county budgeting, not household payment duties or health coverage eligibility.
Medicaid plans get contract extension offers
Arizona Medicaid can retain 2010–2011 risk contingency rate-setting and administrative funding levels from October 1, 2025, through September 30, 2026. By December 1, 2025, it must offer eligible Complete Care plans one-year extensions for October 1, 2027–September 30, 2028. Eligible plans hold current contracts beginning with YH19-0001, including plans with regional behavioral health agreements. Extensions cannot cause lost federal funding. Further extensions require the Department of Administration to find they serve the state's best interest.
Rural care gets shared software grants
Arizona funds a competitive health software grant program for fiscal years 2025–2026 through 2027–2028. The software supports rural acute care and care coordination, aiming to reduce health costs and unnecessary transportation. The award deadline is December 1, 2025, and software must meet federal health privacy standards. Recipients must report cost and time savings for all three years; state agencies report annually by June 30. The program is repealed December 31, 2028.
Safety-net hospitals receive targeted state payments
For fiscal year 2025–2026, safety-net hospital payments include $28.4749 million for Arizona State Hospital and $884,800 for qualifying private hospitals. Private hospitals must meet the federal mandatory qualification or be in Yuma County with at least 300 beds. Arizona State Hospital must certify expenses by March 31, 2026; related federal matching money goes to the state general fund. Remaining private-hospital funds go first to counties below 400,000 people, then counties from 400,000 to below 900,000. Counties with at least 900,000 people come last.
Tribal dialysis construction gets grant funding
Arizona provides a one-time $3 million grant in fiscal year 2025–2026 to build an outpatient dialysis center. The qualifying facility must operate under Public Law 93-638 and as a critical access hospital. It must be on qualifying tribal or unincorporated land in a county with no more than 70,000 people. It must benefit tribal members needing dialysis and serve a patient population of at least 10,000. It must also be at least 30 miles from the nearest Arizona-licensed outpatient dialysis center.
Nursing faculty funds remain available longer
Nurse education pilot money can supplement nursing faculty funding through fiscal year 2025–2026, extending the period by one year. It cannot replace legislative funding. Unspent pilot money returns to the state general fund on June 30, 2027, instead of July 1, 2026.
Regents lose nursing pilot funding access
The Arizona Board of Regents cannot receive nurse education investment pilot distributions in fiscal year 2025–2026. The law states no excluded funding amount. This restriction applies to program distributions, not direct household health or education benefits.
Arizona removes several health law provisions
The law repeals Arizona Revised Statutes section 36-145. Sections 36-1803 through 36-1807 are repealed after December 31, 2026. Title 36, chapter 16 is repealed after June 30, 2027. The provided text does not describe these provisions, so their effects on household costs, services, or rights are unclear.
County health payments and federal-share transfers
For fiscal year 2025–2026, county hospital and medical care contributions are: Apache $268,800; Cochise $2.2148 million; Coconino $742,900; Gila $1.4132 million; Graham $536,200; Greenlee $190,700; La Paz $212,100; Maricopa $14.7839 million; Mohave $1.2377 million; Navajo $310,800; Pima $14.9518 million; Pinal $2.7156 million; Santa Cruz $482,800; Yavapai $1.4278 million; and Yuma $1.3251 million. Counties generally owe one-twelfth by each month's fifth day; Arizona Medicaid can request up to three months in advance. Unpaid amounts must be withheld from eligible state payments with interest, excluding highway user revenue distributions. Excess contributions can be reduced or returned. By December 31, 2026, Arizona Medicaid must also transfer counties the fiscal year 2025–2026 amounts required by the federal proportional-share rule.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
John Kavanagh
Republican • Senate
Roll Call Votes
Senate vote • 6/27/2025
CONCUR: Passed
Yes: 0 • No: 0
Senate vote • 6/27/2025
FINAL: Passed
Yes: 21 • No: 8
Senate vote • 6/26/2025
MOTION: failed to pass
Yes: 11 • No: 38
Senate vote • 6/26/2025
THIRD: Passed
Yes: 43 • No: 13
Senate vote • 6/26/2025
MISC: failed to pass
Yes: 10 • No: 40
Senate vote • 6/26/2025
DP/C&P
Yes: 8 • No: 0
Senate vote • 6/19/2025
THIRD: Passed
Yes: 18 • No: 12
Senate vote • 6/17/2025
DP
Yes: 9 • No: 1
Actions Timeline
Final Reading: Passed
6/27/2025SenateConcurrence: Passed
6/27/2025SenateThird Reading: Passed
6/26/2025SenateMiscellaneous Motion: failed to pass
6/26/2025SenateCOW Motion to Amend: failed to pass
6/26/2025SenateCommittee of the Whole: do pass amended
6/26/2025SenateMiscellaneous Motion: Passed
6/26/2025Senateundefined: DP/C&P
6/26/2025SenateThird Reading: Passed
6/19/2025SenateCommittee of the Whole: do pass amended
6/19/2025Senateundefined: PFC
6/17/2025Senateundefined: DP
6/17/2025Senate
Bill Text
Chaptered Version
House Engrossed Version
Introduced Version
Senate Engrossed Version