Assigned to HHS & APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1585
appropriations; services providers; reimbursement rates
Purpose
Appropriates $15 million from the state General Fund (state GF) and $______ in Medicaid
expenditure authority in FY 2025 to the Department of Economic Security (DES) for
reimbursement rate increases for providers of home and community-based services (HCBS) and
room and board services to individuals with intellectual and developmental disabilities.
Background
The DES Director is responsible for developing and annually revising a statewide plan and
initiating statewide programs and services for persons with developmental disabilities. Services
include child, adult, residential and resource services. An Arizona resident with a developmental
disability, supported by medical and psychological documentation, is eligible to apply for
developmental disabilities programs, services and facilities operated, licensed and supervised by
DES (A.R.S. §§ 36-554 and 36-559).
The Division of Developmental Disabilities (DDD) is the division of DES that empowers
individuals with intellectual and developmental disabilities to lead self-directed, healthy and
meaningful lives. DDD provides supports and services for eligible Arizonans diagnosed with one
of the following developmental disabilities: 1) autism; 2) cerebral palsy; 3) epilepsy; 4) cognitive
or intellectual disability; 5) Down syndrome; or 6) are under the age of six and at risk of having a
developmental disability. DDD serves more than 40,000 people with developmental disabilities
and their families throughout Arizona each year (DDD).
HCBS may be provided in a member's home, an adult foster care home, an assisted living
home or center, group homes or at other licensed behavioral health alternative residential facilities.
HCBS services include: 1) home health services; 2) licensed health aid; 3) homemaker services;
4) personal care; 5) day care; 6) habilitation; 7) respite care; 8) transportation; and 9) other services
approved by the Director of the Arizona Health Care Cost Containment System (A.R.S. § 36-
2939).
S.B. 1585 appropriates $15 million from the state GF to DES in FY 2025.
Provisions
1. Appropriates $13 million from the state GF and $______ in Medicaid expenditure authority in
FY 2025 to DES for reimbursement rate increases for providers of HCBS to individuals with
intellectual and developmental disabilities.
2. Appropriates $2 million from the state GF in FY 2025 to DES for the state-funded Arizona
Long-Term Care Fund for reimbursement rate increases for providers of room and board
services for individuals with intellectual and developmental disabilities. FACT SHEET
S.B. 1585
Page 2
3. Declares that the Legislature intends that these appropriations be considered ongoing funding
in future years.
4. Requires DES to increase, with community stakeholder input, reimbursement rates for all
HCBS provided to individuals with intellectual and developmental disabilities, except nursing
services and therapy services.
5. Requires, by September 1, 2024, DES to report the increased provider rates to the Joint
Legislative Budget Committee.
6. Requires, by October 1, 2024, DES to implement the increased provider rates.
7. Becomes effective on the general effective date, except as otherwise noted.
Prepared by Senate Research
February 8, 2024
MM/DM/mg