Assigned to HHS & APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
REVISED
FACT SHEET FOR S.B. 1613
ALTCS; rate increases; appropriations
Purpose
Appropriates $13,592,216 from the state General Fund (state GF) and $63,331,829 from
Expenditure Authority to the Arizona Health Care Cost Containment System (AHCCCS) and
$821,989 from the state GF and $1,504,001 in developmental disabilities Medicaid Expenditure
Authority to the Department of Economic Security (DES) to provide rate increases in the Arizona
Long Term Care System (ALTCS) for assisted living centers and skilled nursing facilities.
Background
ALTCS is the management and delivery system of hospitalization, medical care,
institutional services and home and community-based services to members through AHCCCS,
program contractors and providers, together with federal participation under Title XIX of the
Social Security Act. ALTCS program contractors must provide certain services to ALTCS
members who are determined to need institutional services, including: 1) nursing facility services,
other than services in an institution for tuberculosis or mental disease; 2) behavioral health services
that are not duplicative of prescribed long-term care services and that are authorized by the
program contractor through the long-term care case management system; 3) hospice services;
4) case management services; 5) health and medical services covered by AHCCCS; and 6) dental
services. As an ALTCS program contractor, DES must provide additional services, if appropriate,
to members who have a developmental disability and who are determined to need institutional
services. Additional services provided by DES include intermediate care facility services and home
and community based services that may be provided in a member's home, at an alternative
residential setting or at other behavioral health alternative residential facilities that are licensed by
the Department of Health Services and approved by the Director of AHCCCS (A.R.S. §§ 36-2932
and 36-2939).
The Joint Legislative Budget Committee (JLBC) estimates that S.B. 1613 would cost
$14,400,000 from the state GF in FY 2026 (JLBC fiscal note).
Provisions
1. Appropriates $13,592,216 from the state GF and $63,331,829 from Expenditure Authority in
FY 2026 to AHCCCS for rate increases in ALTCS for assisted living centers and skilled
nursing facilities.
2. Appropriates $821,989 from the state GF and $1,504,001 in developmental disabilities
Medicaid Expenditure Authority in FY 2026 to DES for rate increases in ALTCS for assisted
living centers and skilled nursing facilities. FACT SHEET – Revised
S.B. 1316
Page 2
3. Exempts the outlined appropriations from lapsing.
4. Becomes effective on the general effective date.
Revisions
• Updates the fiscal impact statement.
Prepared by Senate Research
March 10, 2025
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