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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
health; budget reconciliation; 2020-2021.
Purpose
Makes statutory and session law changes relating to health necessary to implement the FY 2021 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1688 contains the budget reconciliation provisions for changes relating to health.
Provisions
Arizona Long-Term Care System (ALTCS)
1. Outlines the following FY 2021 county contributions for ALTCS, totaling $305,872,000:
|
County |
Contribution |
|
Apache |
$696,200 |
|
Cochise |
$5,181,000 |
|
Coconino |
$2,090,300 |
|
Gila |
$2,519,200 |
|
Graham |
$1,745,100 |
|
Greenlee |
$3,900 |
|
La Paz |
$716,100 |
|
Maricopa |
$196,891,500 |
|
Mohave |
$9,763,200 |
|
Navajo |
$2,881,800 |
|
Pima |
$47,415,800 |
|
Pinal |
$14,431,100 |
|
Santa Cruz |
$2,402,000 |
|
Yavapai |
$9,074,300 |
|
Yuma |
$10,060,500 |
2. Directs the State Treasurer to collect from the counties the difference between the total contribution and the counties' share of the state's actual contribution, if the overall cost for ALTCS exceeds the amount specified in the General Appropriations Act for FY 2021.
3. Specifies that the counties' share of the state's contribution must comply with any federal maintenance effort requirements.
4. Requires the Director of the Arizona Health Care Cost Containment System (AHCCCS) to notify the State Treasurer of the counties' share of the state's contribution and report the amount to the Director of the Joint Legislative Budget Committee (JLBC).
5. Directs the State Treasurer to:
a) withhold from any other monies payable to a county from any available state funding source, excluding the Arizona Highway User Revenue Fund (HURF), an amount necessary to fulfill that county's contribution requirement; and
b) deposit the withheld amounts and amounts paid by counties into the ALTCS Fund.
County Acute Care
6. Outlines the following FY 2021 county acute care contributions:
|
County |
Contribution |
|
Apache |
$268,800 |
|
Cochise |
$2,214,800 |
|
Coconino |
$742,900 |
|
Gila |
$1,413,200 |
|
Graham |
$536,200 |
|
Greenlee |
$190,700 |
|
La Paz |
$212,100 |
|
Maricopa |
$17,788,700 |
|
Mohave |
$1,237,700 |
|
Navajo |
$310,800 |
|
Pima |
$14,951,800 |
|
Pinal |
$2,715,600 |
|
Santa Cruz |
$482,800 |
|
Yavapai |
$1,427,800 |
|
Yuma |
$1,325,100 |
7. Requires the State Treasurer, if a county does not provide the aforementioned funding, to:
a) subtract the amount owed by the county from any payments required to be made by the State Treasurer to the county plus interest on that amount, retroactive to the first day the funding was due; and
b) if the amount withheld is insufficient to meet that county’s funding requirement, withhold from any other monies payable to that county from any available state funding source, excluding the HURF, an amount necessary to fulfill that county’s requirement.
8. Requires that payment equal to 1/12th of the total amount for county acute care contributions be made to the State Treasurer by the fifth day of each month and requires the State Treasurer, on request from the Director of AHCCCS, to require that up to three months' payment be made in advance, if necessary.
9. Requires the State Treasurer to deposit the amounts paid and withheld into the AHCCCS Fund and the ALTCS Fund.
10. Allows the Director of AHCCCS, if payments made exceed the amount required to meet the costs incurred by AHCCCS for the hospitalization and medical care of eligible persons, to instruct the State Treasurer to:
a) reduce the remaining payments to be paid by a specified amount; or
b) provide to the counties specified amounts from the AHCCCS Fund and the ALTCS Fund.
11. States that it is the intent of the Legislature that the Maricopa County acute care contribution be reduced in each subsequent year according to the changes in the Gross Domestic Product price deflator.
12. States that it is the intent of the Legislature for FY 2021 that AHCCCS implement a Medicaid program within the available appropriation.
Disproportionate Share Hospital (DSH) Payments
13. Establishes the FY 2021 DSH payments as follows:
a) $113,818,500 for a qualifying nonstate-operated public hospital, of which $4,202,300 is distributed to the Maricopa County Special Health Care District (District) and the remaining federal portion is deposited in the state General Fund (state GF);
b) $28,474,900 for the Arizona State Hospital (ASH), of which the federal portion is deposited in the state GF; and
c) $884,800 for private qualifying DSHs, which are hospitals that meet the mandatory definition of qualifying DSHs as defined by the Social Security Act or DSHs that are located in Yuma County and contain at least 300 beds.
14. Outlines the following requirements once AHCCCS files a claim with the federal government and receives federal financial participation based on the amount certified by the District:
a) if the certification is equal to or less than $113,818,500 and AHCCCS determines that the revised amount is correct, AHCCCS must notify the Governor, the President of the Senate and the Speaker of the House of Representatives (House) and distribute $4,202,300 to the District and deposit the balance of the federal financial participation in the state GF;
b) if the certification is for an amount less than $113,818,500 and AHCCCS determines that the revised amount is incorrect, AHCCCS must notify the Governor, the President of the Senate and the Speaker of the House and must deposit the total amount of the federal financial participation in the state GF; or
c) if the certification is for an amount greater than $113,818,500, AHCCCS must distribute $4,202,300 to the District and deposit $75,812,100 of the federal financial participation in the state GF.
15. Allows AHCCCS to make additional DSH payments to the District.
16. Outlines the following requirements once AHCCCS files a claim with the federal government and receives federal financial participation based on the amount certified by ASH:
a) if the certification is for an amount less than $28,474,900, AHCCCS must notify the Governor, the President of the Senate and the Speaker of the House and must deposit the entire amount of federal financial participation in the state GF; and
b) requires the certified public expense (CPE) form to contain both the total amount of qualifying DSH expenditures and the amount limited by the Social Security Act.
17. Stipulates that, after DSH payment distributions are made, the allocation of DSH payments designated to political subdivisions, tribal governments and universities must be made available first to qualifying private hospitals located outside the Phoenix Metropolitan Statistical Area and the Tucson Metropolitan Statistical Area before being made available to qualifying hospitals within those areas.
18. Requires the District, by May 1, 2021, and ASH, by March 31, 2021, to each provide a CPE form for qualifying DSH expenditures to AHCCCS.
19. Continues to require AHCCCS to assist the District and ASH in determining the amount of qualifying DSH expenditures and maintains reporting requirements and distribution procedures of received federal matching funds in FY 2021.
Miscellaneous
20. Continues to exclude county contributions for Proposition 204 administrative costs from county expenditure limitations.
21. Excludes county contributions related to the costs of inpatient, in-custody competency restoration treatment from county expenditure limitations.
22. Continues to allow monies in the Health Services Lottery Monies Fund to be used for purposes specified in the FY 2021 General Appropriations Act.
23. Continues to allow the Director of the Department of Health Services (DHS) to increase fees in FY 2021 for services provided by the Bureau of Radiation Control (BRC) and continues, until July 1, 2021, to exempt DHS from rulemaking requirements for this purpose.
24. Asserts the intent of the Legislature that revenue generated by fees collected for BRC services do not exceed $1,900,000.
25. Directs DHS to deposit fees collected for BRC services into the Health Services Licensing Fund.
26. Continues to allow AHCCCS to extend risk contingency rate settings for all managed care organizations (MCOs) and funding for all MCO administrative funding levels imposed in contract year 2010 for the contract year beginning October 1, 2020, and ending September 30, 2021.
27. Becomes effective on signature of the Governor.
Prepared by Senate Research
March 18, 2020
CRS/kja