reimbursement rate increases; appropriations

Plain English Breakdown

The official source material did not provide specific details on how these increased rates might affect other parts of the budget or future funding beyond fiscal year 2031, leaving some uncertainty.

Increase Reimbursement Rates for Home and Community-Based Services

This bill provides more money to help people with intellectual and developmental disabilities by increasing the rates paid to service providers.

What This Bill Does

• Appropriates $46 million from state funds and $84.2 million in Medicaid funding each year from 2027 to 2031 for higher reimbursement rates for home and community-based services (HCBS).
• Provides $4 million from state funds each year from 2027 to 2031 for higher reimbursement rates for room and board services.
• Requires the Department of Economic Security (DES) to increase reimbursement rates for HCBS so that every service gets more money.
• Directs DES, prior to increasing provider rates, to engage community stakeholders regarding DES's plan to increase reimbursement rates.
• Requires DES to report new rates to a committee by September 1 each year and put them into effect by October 1.

Who It Names or Affects

• People with intellectual and developmental disabilities who use home and community-based services (HCBS).
• Providers of HCBS and room and board services.
• The Department of Economic Security (DES) which manages these programs.

Terms To Know

Home and Community-Based Services (HCBS)

Services that help people with disabilities live in their homes or communities instead of institutions, like personal care, therapy, and transportation.

Reimbursement Rate

The amount of money paid to service providers for the services they give to clients.

Limits and Unknowns

• It is unclear how these increased rates will affect the overall budget or other programs.
• There may be limitations on funding beyond fiscal year 2031.

Official Summary Text

SB1072 - 572R - Senate Fact Sheet

Assigned to
HHS
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ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
s.b. 1072

reimbursement
rate increases; appropriations

Purpose

Appropriates
$50,000,000 from the state General Fund (state GF) and $82,201,000 in Medicaid
Expenditure Authority in each of FYs 2027 through 2031 to the Department of
Economic Security (DES) for reimbursement rate increases for home and
community-based services (HCBS) and room and board services for individuals
with intellectual and developmental disabilities.

Background

The Director of
DES is responsible for developing and annually revising a statewide plan and
initiating statewide programs and services for persons with developmental
disabilities. Services include child, adult, residential and resource services.
An Arizona resident with a developmental disability, supported by medical and
psychological documentation, is eligible to apply for developmental
disabilities programs, services and facilities operated, licensed and
supervised by DES (A.R.S. ��
36-554

and
36-559
).

The Division of
Developmental Disabilities (DDD) is the division of DES that empowers
individuals with intellectual and developmental disabilities to lead
self-directed, healthy and meaningful lives. DDD provides supports and services
for eligible Arizonans diagnosed with any of the following developmental
disabilities: 1) autism; 2) cerebral palsy; 3) epilepsy; 4) cognitive or
intellectual disability; 5) Down syndrome; or 6) are under the age of six and
at risk of having a developmental disability. DDD serves more than 50,000
people with developmental disabilities and their families throughout Arizona
each year (
DDD
).

DES is
responsible for issuing HCBS certificates to all provider agencies providing
services to DDD members. HCBS certification ensures that all individuals
providing direct care have met qualifications for assisting individuals with
developmental disabilities. HCBS include, but are not limited to, attendant
care, day treatment and training, habilitation, personal care, respite care,
therapy services and transportation (
DDD
).

S.B. 1072
appropriates $50,000,000 from the state GF to DES in each of FYs 2027 through
2031.

Provisions

1.

Appropriates $46,000,000 from the state GF and $84,201,000 in Medicaid
Expenditure Authority in each of FYs 2027 through 2031 to DES for reimbursement
rate increases for HCBS to individuals with intellectual and developmental
disabilities.

2.

Appropriate $4,000,000 from the state GF in each of FYs 2027 through 2031
to DES for reimbursement rate increases for room and board services for
individuals with intellectual and developmental disabilities.

3.

Requires DES to provide reimbursement rate increases for HCBS provided
to individuals with intellectual and developmental disabilities so that each
service receives an increase.

4.

Directs DES, prior to increasing provider rates, to engage community
stakeholders regarding DES's plan to increase reimbursement rates.

5.

Requires DES to report the increased provider rates to the Joint
Legislative Budget Committee (JLBC) by September 1 of each year monies are
appropriated and to implement the increase by October 1 of that year.

6.

Directs DES, in each fiscal year monies are appropriated, to issue a
nationally recognized survey to its qualified vendors to collect data on the
state of the direct support professional workforce for HCBS, including the
length of employment, turnover rates and vacancy rates, and report the findings
to JLBC when three years of data is collected.

7.

Requires JLBC to review the direct support professional workforce data
to determine if improvements have occurred in the average length of employment,
turnover rates and vacancy rates of the direct support professional workforce
for HCBS.

8.

Authorizes JLBC to recommend that the FY 2030 and FY 2031 appropriations
not occur if improvements have not been made in the direct support professional
workforce for HCBS.

9.

Declares that the Legislature intends for the appropriations to be
considered ongoing funding in future years.

10.

Becomes
effective on the general effective date.

Prepared by Senate Research

January 15, 2026

MM/SDR/hk

Current Bill Text

SB1072 - 572R - S Ver

Senate Engrossed

reimbursement rate
increases; appropriations

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1072

AN
ACT

Appropriating monies to the department of
economic security.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1.
Appropriations;
department of economic security; reporting requirements; intent

A. The sum of $46,000,000
from the state general fund and $84,201,000 in medicaid expenditure authority
are appropriated in each of fiscal years 2026-2027, 2027-2028, 2028-2029,
2029-2030 and 2030-2031 to the department of economic security to
provide reimbursement rate increases for home and community-based
services to individuals with intellectual and developmental disabilities.

B. The sum of $4,000,000 is
appropriated from the state general fund in each of fiscal years 2026-2027,
2027-2028, 2028-2029, 2029-2030 and 2030-2031 to the
department of economic security to provide reimbursement rate increases for
room and board services for individuals with intellectual and developmental
disabilities.

C. The department of
economic security shall provide reimbursement rate increases for home and
community-based services that are provided to individuals with intellectual and
developmental disabilities so that each service receives an
increase. Before implementing provider rate increases, the
department must engage community stakeholders regarding the department's plans
to increase the reimbursement rates.

D. On or before September 1
in each fiscal year monies are appropriated pursuant to subsections A and B of
this section, the department of economic security shall report to the joint
legislative budget committee the increased provider rates adopted pursuant to
this section.� The department shall implement the increased provider rates on
or before October 1 of each fiscal year monies are appropriated pursuant to
subsections A and B of this section.

E. The department of
economic security shall issue a nationally recognized survey to its qualified
vendors to collect data on the state of the direct support professional
workforce for home and community-based services, including the length of
employment, turnover rates and vacancy rates, in each fiscal year monies are
appropriated pursuant to subsections A and B of this section and report the
findings to the joint legislative budget committee when three years of data is
collected. The joint legislative budget committee shall review the
direct support professional workforce data to determine whether improvements
have occurred in the average length of employment, turnover rates and vacancy
rates of the direct support professional workforce for home and community-based
services. If improvements have not occurred in the direct support
professional workforce for home and community-based services, the joint
legislative budget committee may recommend that the funding appropriated in
subsections A and B of this section for fiscal years 2029-2030 and 2030-2031
not occur.

F. The legislature intends
that the appropriations made in subsections A and B of this section be
considered ongoing funding in future years.