Assigned to APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1230
developmental disabilities; provider increases
Purpose
Appropriates $30,000,000 from the state General Fund (state GF) and $_____ in Medicaid
Expenditure Authority in FY 2023 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) within DES provides services to
individuals 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. 1230 appropriates $30,000,000 from the state GF and $_____ in Medicaid
Expenditure Authority in FY 2023 and $_____ from the state GF and $______ in Medicaid
Expenditure Authority in FYs 2024 and 2025 to DES.
Provisions
1. Appropriates the following amounts to DES to provide reimbursement rate increases for
services to individuals with intellectual and developmental disabilities:
a) $30,000,000 from the state GF and $_____ in Medicaid Expenditure Authority in FY 2023;
b) $____ from the state GF and $____ in Medicaid Expenditure Authority in FY 2024; and
c) $____ from the state GF and $____ in Medicaid Expenditure Authority in FY 2025.
2. Requires DES to use the FY 2020 rate rebase study and the most recent early intervention
services rate rebase study to provide reimbursement rate increases for all services, including
early intervention services, to individuals with intellectual and developmental disabilities in
FYs 2023, 2024 and 2025 in order for each service to receive an increase in each fiscal year.
3. Requires DES, by the end of FY 2025, to ensure that all reimbursement rates for services to
individuals with intellectual and developmental disabilities are at 100 percent of the benchmark
rates, including any adjustment needed to account for any minimum wage increases.
4. Directs DES, before implementing provider rate increases, engage community stakeholders
regarding DES's plans to increase rates. FACT SHEET
S.B. 1230
Page 2
5. Requires DES, by September 1 of each fiscal year, to submit a report to the Joint Legislative
Budget Committee describing DES's efforts to engage stakeholders and plans to implement
provider rate increases for FYs 2023, 2024 and 2025.
6. Contains statement of legislative intent.
7. Becomes effective on the general effective date.
Prepared by Senate Research
February 11, 2022
LMM/sr