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SB1399 • 2026

prepaid capitated contractors; cost reports

SB1399 - prepaid capitated contractors; cost reports

Budget Children Healthcare
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Janae Shamp
Last action
2026-06-12
Official status
Sent to governor
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

prepaid capitated contractors; cost reports

SB1399 - 572R - Senate Fact Sheet Assigned to HHS�������������������������������������������������������������������������������������������������������������� AS PASSED BY COW ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR S.B.

What This Bill Does

  • SB1399 - 572R - Senate Fact Sheet Assigned to HHS�������������������������������������������������������������������������������������������������������������� AS PASSED BY COW ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR S.B.
  • 1399 prepaid capitated contractors; cost reports Purpose Requires, by December 1 of each year, the Arizona Health Care Cost Containment System (AHCCCS) to report the percentage of monies all nongovernment entities that have a prepaid capitated contract with AHCCCS spent in the previous contract year on direct payments to providers for services and administrative costs, by category, to specified officials.
  • Background AHCCCS administers the state�s Medicaid program and delivers services to eligible members primarily through contracts with managed care organizations and other prepaid capitated contractors.
  • AHCCCS pays contractors a fixed per-member, per-month payment to provide covered services.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: Fifty-seventh Legislature Health & Human Services Second Regular Session S.B.

  • Fifty-seventh Legislature Health & Human Services Second Regular Session S.B.
  • 1399 PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B.
  • 1399 (Reference to Senate engrossed bill) The bill as proposed to be amended is reprinted as follows: 1 Section 1.
  • Title 36, chapter 29, article 1, Arizona Revised 2 Statutes, is amended by adding section 36-2904.01, to read: 3 36-2904.01.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Amendment explanation prepared by Michael Madden 3/2/2026 Bill Number: S.B.

  • Amendment explanation prepared by Michael Madden 3/2/2026 Bill Number: S.B.
  • 1399 Shamp Floor Amendment Reference to: printed bill Amendment drafted by: Leg.
  • Council FLOOR AMENDMENT EXPLANATION 1.
  • Requires the Arizona Health Care Cost Containment System, instead of each prepaid capitated contractor, to submit an annual expenditure report aggregated for all nongovernment entities with a prepaid capitated contract.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Plain English: Fifty-seventh Legislature Health & Human Services Second Regular Session S.B.

  • Fifty-seventh Legislature Health & Human Services Second Regular Session S.B.
  • 1399 PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B.
  • 1399 (Reference to Senate engrossed bill) Strike everything after the enacting clause and insert: 1 "Section 1.
  • Appropriation; department of economic security; 2 child care assistance; exemption 3 A.
  • This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

  1. 2026-06-12 Arizona State Legislature

    Sent to governor

  2. 2026-06-11 Senate

    Transmitted to Senate

  3. 2026-06-11 House

    House third read passed

  4. 2026-05-05 House

    House committee of the whole

  5. 2026-03-31 House

    House minority caucus

  6. 2026-03-31 House

    House majority caucus

  7. 2026-03-30 House

    House consent calendar

  8. 2026-03-10 House

    House second read

  9. 2026-03-09 House

    House Rules: C&P

  10. 2026-03-09 House

    House Health & Human Services: DP

  11. 2026-03-09 House

    House first read

  12. 2026-03-05 House

    Transmitted to House

  13. 2026-03-05 Senate

    Senate third read passed

  14. 2026-03-03 Senate

    Senate committee of the whole

  15. 2026-02-23 Senate

    Senate minority caucus

  16. 2026-02-23 Senate

    Senate majority caucus

  17. 2026-02-23 Senate

    Senate consent calendar

  18. 2026-01-29 Senate

    Senate second read

  19. 2026-01-28 Senate

    Senate Rules: PFC

  20. 2026-01-28 Senate

    Senate Health and Human Services: DP

  21. 2026-01-28 Senate

    Senate first read

Official Summary Text

SB1399 - 572R - Senate Fact Sheet

Assigned to
HHS�������������������������������������������������������������������������������������������������������������� AS
PASSED BY COW

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1399

prepaid capitated
contractors; cost reports

Purpose

Requires, by
December 1 of each year, the Arizona Health Care Cost Containment System
(AHCCCS) to report the percentage of monies all nongovernment entities that
have a prepaid capitated contract with AHCCCS spent in the previous contract
year on direct payments to providers for services and

administrative
costs, by category, to specified officials.

Background

AHCCCS
administers the state�s Medicaid program and delivers services to eligible
members primarily through contracts with managed care organizations and other
prepaid capitated contractors. AHCCCS pays contractors a fixed per-member,
per-month payment to provide covered services. Contractors are then responsible
for managing the delivery and cost of care within those payments. Through these
contracts, AHCCCS provides coverage for specified health care services and
supplies, including but not limited to inpatient and outpatient hospital
services, laboratory and X-ray services, prescription medications and medical supplies,
health screenings, diagnostic services and medical transportation (A.R.S. ��
36-2901
;

36-2904

and
36-2907
).

There is no anticipated fiscal impact to the state
General Fund associated with this legislation.

Provisions

1.

Requires,
by December 1 of each year, AHCCCS to submit an annual report, aggregated for
all nongovernment entities that have a prepaid capitated contract with AHCCCS, detailing
the percentage of monies spent in the previous contract year on direct

payments to providers for services and on
administrative costs, by category, to:

a)

the Joint Legislative Budget Committee;

b)

the Governor;

c)

the President of the Senate;

d)

the Speaker of the House of Representatives; and

e)

the
members of the Senate and House of Representatives Health and Human Services
Committees, or their successor committees.

2.

Requires
the report to include the percentage of monies spent on administrative costs
for each of the following:

a)

health care quality improvement activities;

b)

program integrity, including fraud, waste and abuse prevention;

c)

taxes, licenses and regulatory fees;

d)

community reinvestment; and

e)

all
other administrative activities.

3.

Becomes effective on the general effective date.

Amendments Adopted by
Committee of the Whole

1.

Requires AHCCCS, rather than each prepaid capitated contractor, to
submit an annual expenditure report aggregated for all nongovernment entities
with a prepaid capitated contract.

2.

Requires the report to include amounts spent on direct payments to
providers for services, rather than direct patient care.

3.

Outlines required administrative costs by category to be included in the
report.

Senate Action

HHS��� 2/19/26����������� DP������ 6-1-0

Prepared by Senate Research

March 3, 2026

MM/MS/hk

Current Bill Text

Read the full stored bill text
SB1399 - 572R - S Ver

Senate Engrossed

prepaid capitated
contractors; cost reports

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1399

AN
ACT

AMending title 36, chapter 29, article 1,
Arizona Revised Statutes, by adding section 36-2904.01; 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 36-2904.01, to read:

START_STATUTE
36-2904.01.

Prepaid capitated contracts; expenditures; annual report

On or before December 1
of each year, the administration shall annually report to the joint legislative
budget committee, the governor, the president of the senate, the speaker of the
House of representatives and the members of the senate and house of representatives
health and human services committees, or their successor committees,
in aggregate for all nongovernment entities that have a prepaid
capitated contract with the administration,
The
percentage of monies in the previous contract year:

1. that was spent on direct
payments to providers for services.

2. that was spent on administrative
costs
for each of the following:

(
a
) Health care
quality improvement administrative activities.

(
b
) Program
integrity, including fraud, waste and abuse prevention expenses.

(
c
) Taxes,
licenses and regulatory fees.

(
d
) Community
reinvestment.

(
e
) All other
administrative activities.
END_STATUTE