Assigned to HHS FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2085
nursing facility provider assessments; continuation
Purpose
Continues the nursing facility provider assessment until September 30, 2031.
Background
The nursing facility provider assessment is a quality assessment charged by the Arizona
Health Care Cost Containment System (AHCCCS) on health care items and services provided by
nursing facilities in order to obtain federal financial participation in AHCCCS services. The
assessment is calculated based on the net patient service revenue of all subjected nursing facilities
and is capped at 3.5 percent, to be paid on a per resident day basis, excluding Medicare resident
days. AHCCCS uses these funds to supplement payments to nursing facilities for covered
Medicaid expenditures (A.R.S. § 36-2999.52).
If a nursing facility fails to pay the full assessment, AHCCCS may suspend or revoke the
nursing facility's provider agreement registration. If the facility still fails to comply within 180
days of suspension or revocation of provider agreement registration, the Department of Health
Services must suspend or revoke the nursing facility's license (A.R.S. § 36-2999.54).
Net patient service revenue is gross inpatient revenues from services that are provided to
nursing facility patients minus reductions from gross inpatient revenue. Reductions from gross
inpatient revenue refers to bad debts, contractual adjustments, uncompensated care,
administrative, courtesy and policy discounts, adjustments and other similar revenue reductions
(A.R.S. § 36-2999.51).
The nursing facility provider assessment terminates on October 1, 2023, unless continued
by the Legislature.
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Continues the nursing facility provider assessment for eight years until September 30, 2031.
2. Becomes effective on the general effective date.
House Action
HHS 2/7/22 DP 9-0-0-0
3
rd
Read 2/17/22 52-6-2
Prepared by Senate Research
February 28, 2022
MM/CC/sr