Official Summary Text
SB1122 - 572R - Senate Fact Sheet
Assigned to
HHS
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PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
REVISED #2
AMENDED
FACT SHEET FOR
s.b. 1122
AHCCCS;
prior authorization; behavioral health
Purpose
Prohibits, beginning January 1, 2027, the Arizona Health Care Cost
Containment System Administration (AHCCCS) from requiring 100 percent
prepayment review for behavioral health services provided to a member under the
American Indian Health Program (AIHP) by a behavioral health provider unless
outlined conditions apply.
Background
AHCCCS serves as Arizona's Medicaid agency, which offers qualifying
Arizona residents access to healthcare programs, including behavioral health. AHCCCS
contracts with health professionals to provide medically necessary health and
medical services to eligible members. AHCCCS provides both inpatient and
outpatient behavioral health services, including but not limited to: 1) all
behavioral health services, medical detoxification, accommodations and
staffing, supplies and equipment, if provided under the direction of a
physician of a Medicare-certified, inpatient facility; 2) screenings provided
by a behavioral health professional or technician; 3) a behavioral health
assessment provided by a behavioral health professional or technician;
4) counseling, including individual therapy, group therapy and family therapy
provided by a behavioral health professional or technician; 5) behavior
management services; and
6) psychosocial rehabilitation services. Inpatient behavioral health services,
other than outlined emergency services, are not covered unless prior
authorization is obtained (
A.R.S.
� 36-2907
;
A.A.C.
R9-22-1205
).
American Indians and Alaska Natives enrolled in AHCCCS or the Children's
Health Insurance Program may choose to receive coverage through the AIHP or an
AHCCCS-contracted managed health plan. AHCCCS covers behavioral health
services, including mental health, substance use treatment and crisis services,
provided at Indian Health Service-covered Tribal facilities or at an AHCCCS
registered provider. Recipients do not need a referral to receive behavioral
health services. Under the AIHP, AHCCCS coverage includes: 1) inpatient
services in a hospital or other facilities; 2) partial care; 3) individual,
group and family counseling and therapy; 4) emergency and crisis services; 5)
behavior management; 6) evaluation and diagnosis;
7) medicine and monitoring of medicine; 8) psychosocial rehabilitation; 9)
laboratory and radiology services; 10) screening; 11) emergency and
non-emergency transportation; and
12) limited respite care (
AHCCCS
AIHP Guide
).
The Joint Legislative Budget Committee (JLBC) states that AHCCCS
estimates S.B. 1122 would increase state General Fund (state GF) costs by
$210,000 and Total Fund costs by $760,000 in FY 2027. In each subsequent year,
the bill would increase state GF costs by $420,000 and Total Fund costs by $1,500,000
to hire 14 new staff members. JLBC notes that it considers the fiscal estimate
to be speculative, as changes to administrative workloads would depend upon
future provider behavior and agency implementation choices (
JLBC
fiscal note
).
Provisions
1.
Prohibits,
beginning January 1, 2027, AHCCCS from requiring 100 percent prepayment review for
behavioral health services provided to a member under the AIHP by a behavioral
health provider unless
AHCCCS implements a
corrective action plan and the provider
is
noncompliant or not engaged in the corrective action plan.
2.
Becomes
effective on the general effective date.
Amendments
Adopted by Committees
1.
Prohibits
AHCCCS from requiring 100 percent prepayment review, rather than prior
authorization.
2.
Removes
specification of the timeline in which a corrective action plan must be
implemented and considered noncompliant.
3.
Makes
technical changes.
Revisions
�
Updates the fiscal impact statement.
Senate
Action
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Prepared by Senate Research
March 26, 2026
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Current Bill Text
Read the full stored bill text
SB1122 - 572R - S Ver
Senate Engrossed
AHCCCS; prior
authorization; behavioral health
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1122
AN
ACT
Amending title 36, chapter 29, article 1,
Arizona Revised Statutes, by adding section 36-2930.07; relating to the
Arizona health care cost containment system.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 36, chapter 29, article 1,
Arizona Revised Statutes, is amended by adding section 36-2930.07, to read:
START_STATUTE
36-2930.07.
Prior authorization; behavioral health services; prohibition;
exception
Beginning January 1, 2027, the administration
may not require
one hundred percent prepayment review for
behavioral health services provided to a member under the American Indian
health
program by a behavioral health provider unless the
administration implements a corrective action plan and the provider
is noncompliant or not engaged in the corrective action plan.
END_STATUTE