ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

 


HB 2847: 2022-2023 budget; health

Sponsor: Representative Cobb (with permission of committee on Rules), LD 5

Committee on Appropriations

Overview

Contains session law provisions relating to health needed to implement the FY 2023 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.

Provisions

Arizona Department of Health Services (DHS)

1.   As session law, exempts county expenditures for restoration to competency treatment from the county expenditure limitation. (Sec. 6)

2.   As session law, allows Health Services Lottery Fund monies to be used for the purposes specified in the FY 2023 General Appropriations Act. (Sec. 8)

Arizona Health Care Cost Containment System (AHCCCS)

3.   As session law, requires, by December 31, 2023, AHCCCS to transfer to the counties any portion necessary to comply with the Patient Protection and Affordable Care Act regarding the counties' proportional share of this state's contribution. (Sec. 3)

4.   As session law, allows, for the contract year beginning October 1, 2022 and ending September 30, 2023, AHCCCS to continue the risk contingency rate settings for all managed care organizations (MCO) and funding for all MCO administrative funding levels that were imposed for the contract year beginning October 1, 2010 and ending September 30, 2011. (Sec. 7)

5.   As session law, states that it is the intent of the Legislature for FY 2023 that AHCCCS implement a program within the available appropriation. (Sec. 9)

Counties

6.   ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteAs session law, sets the annual county Arizona Long Term Care System (ALTCS) contributions for FY 2023 at $333.3 million and:

a)   Outlines each county's contribution;

b)   Requires the State Treasurer to recover the cost of any funding that was not provided; and

c)   Requires the State Treasurer to deposit monies received into the ALTCS fund. (Sec. 1)

7.   As session law, requires the counties' share of the state's contribution to comply with federal maintenance of effort requirements. (Sec. 1)

8.   As session law, sets the county acute care contributions at $44,917,500 and:

a)   Outlines each county's contribution;

b)   Outlines payment processes and requirements;

c)   Requires the State Treasurer to recover the cost of any funding that was not provided by a county from other funds owed to that county, excluding the Highway User Revenue Fund; and

d)   States that the Legislature intends that the Maricopa County contribution be reduced in each subsequent year according to changes in the GDP price deflator. (Sec. 4)

9.   As session law, continues to exclude the Proposition 204 administration costs from the county expenditure limitations. (Sec. 5)

Disproportionate Share Hospital (DSH) Payments

10.  As session law, sets the annual DSH payment allotment for the Maricopa County Special Health Care District (District) at $113,818,500 for FY 2023 and:

a)   Requires the District to provide a certified public expense form for the amount of qualifying DSH expenditures made to AHCCCS by May 1, 2023 for all state plan years as required by the AHCCCS Section 1115 waiver;

b)   States that if the certification is equal to or less than $113,818,500 and AHCCCS determines the revised amount is correct, AHCCCS must:

i.   Notify the Governor and the Legislature; and

ii. Distribute $4,202,300 to the District and deposit the balance in the state GF.

c)   States that if the certification is less than $113,818,500 and AHCCCS determines the revised amount is not correct, AHCCCS must:

i.   Notify the Governor and the Legislature; and

ii. Deposit the total amount in the state GF.

d)   Provides that if the certification is greater than $113,818,500, AHCCCS must:

i.    Distribute $4,202,300 to the District; and

ii.  $75,482,000 of the federal financial participation in the state GF; and

e)   Allows AHCCCS to make additional DSH payments to the District pursuant to statute. (Sec. 2)

11.  As session law, sets the annual DHS payment allotment to the Arizona State Hospital (ASH) at $28,474,900 for FY 2023 and:

a)   Requires ASH to provide a certified public expense form for the amount of qualifying DSH expenditures made to AHCCCS by March 31, 2023;

b)   Directs AHCCCS to:

i.   Assist ASH in determining the amount of qualifying DSH expenditures; and

ii. Deposit the entire amount of federal financial participation in the state GF.

c)   States that if the certification is less than $28,474,900, AHCCCS must:

i.   Notify the Governor and the Legislature; and

ii. Deposit the entire amount of federal financial participation in the state GF; and

d)   Requires the certified public expense form to contain the total amount of qualifying DSH expenditures and the amount limited by federal law. (Sec. 2)

12.  As session law, specifies that once DSH distributions are made, further distributions must be made available first to qualifying private hospitals located outside of Phoenix and Tucson metropolitan statistical areas before being made available to qualifying hospitals within the Phoenix and Tucson metropolitan statistical areas. (Sec. 2)

13.  As session law, establishes the annual DSH payment allotment for private qualifying DSH hospitals at $884,800 for FY 2023, consistent with the appropriation and the terms of the Section 1115 waiver and:

a)   Limits payments to hospitals that either:

i.   Meet the mandatory definition of DSH qualifying hospital under Section 1923 of the Social Security Act; or

ii. Are located in Yuma County and contain at least 300 beds. (Sec. 2)

 

 

 

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                        HB 2847

Initials AG       Page 0 Appropriations

 

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