Assigned to APPROP                                                                                          AS PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Fourth Legislature, Second Regular Session

AMENDED

FACT SHEET FOR S.B. 1552

developmental disability providers; rates; appropriations

Purpose

            Appropriates $15,000,000 from the state General Fund (state GF) and $35,016,700 in Medicaid Expenditure Authority in FY 2021 to the Department of Economic Security (DES) to provide reimbursement rate increases for services to individuals with intellectual and developmental disabilities.

Background

The Division of Developmental Disabilities (DDD) of the DES provides services to individuals diagnosed with developmental and intellectual disabilities including cerebral palsy, autism and epilepsy. Services provided by DDD include: 1) attendant care; 2) habilitation; 3) home health aide; 4) home nursing; 5) occupational, physical and speech therapies; 6) respite care; and 7) medical services.

            DDD is required to rebase the reimbursement rates for home and community-based services every five years (DES).

            S.B. 1552 appropriates $15,000,000 from the state GF in FY 2021 to DES.

Provisions

1. Appropriates $15,000,000 from the state GF and $35,016,700 in Medicaid Expenditure Authority in FY 2021 to DES to provide reimbursement rate increases for services to individuals with intellectual and developmental disabilities.

2. Requires DES to use the FY 2020 reimbursement rate rebase study to provide reimbursement rate increases for all services to individuals with intellectual and developmental disabilities in FY 2021.

3. Requires DES, before implementing reimbursement rate increases, to engage community stakeholders regarding DES's plan to increase rates.

4. Requires DES to submit a report to the Joint Legislative Budget Committee, before September 1, 2020, describing DES's efforts to engage stakeholders and plans to implement reimbursement rate increases for FY 2021.

5. Becomes effective on the general effective date.

Amendments Adopted by Committee

1. Reduces the appropriation and removes the appropriations in FY 2022 and FY 2023.

2. Removes the legislative intent clause.

3. Removes the requirement that DES ensure all reimbursement rates are at 100 percent of the benchmark rates.

Senate Action

APPROP         2/25/20      DPA     7-2-0

Prepared by Senate Research

February 26, 2020

LMM/kja