Arizona 2025 Regular Session

Arizona Senate Bill SB1671 Compare Versions

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1-Senate Engrossed traditional healing services; AHCCCS State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1671 An Act amending sections 36-2907, 36-2939 and 36-2981, Arizona Revised Statutes; appropriating monies; relating to the Arizona health care cost containment system. (TEXT OF BILL BEGINS ON NEXT PAGE)
1+REFERENCE TITLE: traditional healing services; AHCCCS State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1671 Introduced by Senators Gonzales: Alston, Bravo, Diaz, Epstein, Gabaldn, Hatathlie, Kuby, Miranda, Ortiz, Shope, Sundareshan; Representatives Garcia, Hernandez A, Hernandez C, Peshlakai An Act amending sections 36-2907, 36-2939 and 36-2981, Arizona Revised Statutes; appropriating monies; relating to the Arizona health care cost containment system. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9-Senate Engrossed traditional healing services; AHCCCS
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1010 State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
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12+Introduced by Senators Gonzales: Alston, Bravo, Diaz, Epstein, Gabaldn, Hatathlie, Kuby, Miranda, Ortiz, Shope, Sundareshan; Representatives Garcia, Hernandez A, Hernandez C, Peshlakai
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6980 Be it enacted by the Legislature of the State of Arizona: Section 1. Section 36-2907, Arizona Revised Statutes, is amended to read: START_STATUTE36-2907. Covered health and medical services; modifications; related delivery of service requirements; rules; definitions A. Subject to the limits and exclusions specified in this section, contractors shall provide the following medically necessary health and medical services: 1. Inpatient hospital services that are ordinarily furnished by a hospital to care for and treat inpatients and that are provided under the direction of a physician or a primary care practitioner. For the purposes of this section, inpatient hospital services exclude services in an institution for tuberculosis or mental diseases unless authorized under an approved section 1115 waiver. 2. Outpatient health services that are ordinarily provided in hospitals, clinics, offices and other health care facilities by licensed health care providers. Outpatient health services include services provided by or under the direction of a physician or a primary care practitioner, including occupational therapy. 3. Other laboratory and X-ray services ordered by a physician or a primary care practitioner. 4. Medications that are ordered on prescription by a physician or a dentist who is licensed pursuant to title 32, chapter 11. Persons who are dually eligible for title XVIII and title XIX services must obtain available medications through a medicare licensed or certified medicare advantage prescription drug plan, a medicare prescription drug plan or any other entity authorized by medicare to provide a medicare part D prescription drug benefit. 5. Medical supplies, durable medical equipment, insulin pumps and prosthetic devices ordered by a physician or a primary care practitioner. Suppliers of durable medical equipment shall provide the administration with complete information about the identity of each person who has an ownership or controlling interest in their business and shall comply with federal bonding requirements in a manner prescribed by the administration. 6. For persons who are at least twenty-one years of age, treatment of medical conditions of the eye, excluding eye examinations for prescriptive lenses and the provision of prescriptive lenses. 7. Early and periodic health screening and diagnostic services as required by section 1905(r) of title XIX of the social security act for members who are under twenty-one years of age. 8. Family planning services that do not include abortion or abortion counseling. If a contractor elects not to provide family planning services, this election does not disqualify the contractor from delivering all other covered health and medical services under this chapter. In that event, the administration may contract directly with another contractor, including an outpatient surgical center or a noncontracting provider, to deliver family planning services to a member who is enrolled with the contractor that elects not to provide family planning services. 9. Podiatry services that are performed by a podiatrist who is licensed pursuant to title 32, chapter 7 and ordered by a primary care physician or primary care practitioner. 10. Nonexperimental transplants approved for title XIX reimbursement. 11. Dental services as follows: (a) Except as provided in subdivision (b) of this paragraph, for persons who are at least twenty-one years of age, emergency dental care and extractions in an annual amount of not more than $1,000 per member. (b) Subject to approval by the centers for medicare and medicaid services, for persons treated at an Indian health service or tribal facility, adult dental services that are eligible for a federal medical assistance percentage of one hundred percent and that exceed the limit prescribed in subdivision (a) of this paragraph. 12. Ambulance and nonambulance transportation, except as provided in subsection G of this section. 13. Hospice care. 14. Orthotics, if all of the following apply: (a) The use of the orthotic is medically necessary as the preferred treatment option consistent with medicare guidelines. (b) The orthotic is less expensive than all other treatment options or surgical procedures to treat the same diagnosed condition. (c) The orthotic is ordered by a physician or primary care practitioner. 15. Subject to approval by the centers for medicare and medicaid services, medically necessary chiropractic services that are performed by a chiropractor who is licensed pursuant to title 32, chapter 8 and that are ordered by a primary care physician or primary care practitioner pursuant to rules adopted by the administration. The primary care physician or primary care practitioner may initially order up to twenty visits annually that include treatment and may request authorization for additional chiropractic services in that same year if additional chiropractic services are medically necessary. 16. For up to ten program hours annually, diabetes outpatient self-management training services, as defined in 42 United States Code section 1395x, if prescribed by a primary care practitioner in either of the following circumstances: (a) The member is initially diagnosed with diabetes. (b) For a member who has previously been diagnosed with diabetes, either: (i) A change occurs in the member's diagnosis, medical condition or treatment regimen. (ii) The member is not meeting appropriate clinical outcomes. 17. pursuant to the terms and conditions approved by the centers for medicare and medicaid services and subject to available funding, traditional healing services, if both of the following apply: (a) The member qualifies for services through the indian health service or tribal facility pursuant to the conditions of participation outlined in 42 code of federal regulations section 136.12. (b) The traditional healing service is delivered by or through the indian health service or a tribal facility. B. The limits and exclusions for health and medical services provided under this section are as follows: 1. Circumcision of newborn males is not a covered health and medical service. 2. For eligible persons who are at least twenty-one years of age: (a) Outpatient health services do not include speech therapy. (b) Prosthetic devices do not include hearing aids, dentures, bone-anchored hearing aids or cochlear implants. Prosthetic devices, except prosthetic implants, may be limited to $12,500 per contract year. (c) Percussive vests are not covered health and medical services. (d) Durable medical equipment is limited to items covered by medicare. (e) Nonexperimental transplants do not include pancreas-only transplants. (f) Bariatric surgery procedures, including laparoscopic and open gastric bypass and restrictive procedures, are not covered health and medical services. C. The system shall pay noncontracting providers only for health and medical services as prescribed in subsection A of this section and as prescribed by rule. D. The director shall adopt rules necessary to limit, to the extent possible, the scope, duration and amount of services, including maximum limits for inpatient services that are consistent with federal regulations under title XIX of the social security act (P.L. 89-97; 79 Stat. 344; 42 United States Code section 1396 (1980)). To the extent possible and practicable, these rules shall provide for the prior approval of medically necessary services provided pursuant to this chapter. E. The director shall make available home health services in lieu of hospitalization pursuant to contracts awarded under this article. For the purposes of this subsection, "home health services" means the provision of nursing services, home health aide services or medical supplies, equipment and appliances that are provided on a part-time or intermittent basis by a licensed home health agency within a member's residence based on the orders of a physician or a primary care practitioner. Home health agencies shall comply with the federal bonding requirements in a manner prescribed by the administration. F. The director shall adopt rules for the coverage of behavioral health services for persons who are eligible under section 36-2901, paragraph 6, subdivision (a). The administration acting through the regional behavioral health authorities shall establish a diagnostic and evaluation program to which other state agencies shall refer children who are not already enrolled pursuant to this chapter and who may be in need of behavioral health services. In addition to an evaluation, the administration acting through regional behavioral health authorities shall also identify children who may be eligible under section 36-2901, paragraph 6, subdivision (a) or section 36-2931, paragraph 5 and shall refer the children to the appropriate agency responsible for making the final eligibility determination. G. The director shall adopt rules providing for transportation services and rules providing for copayment by members for transportation for other than emergency purposes. Subject to approval by the centers for medicare and medicaid services, nonemergency medical transportation shall not be provided except for stretcher vans and ambulance transportation. Prior authorization is required for transportation by stretcher van and for medically necessary ambulance transportation initiated pursuant to a physician's direction. Prior authorization is not required for medically necessary ambulance transportation services rendered to members or eligible persons initiated by dialing telephone number 911 or other designated emergency response systems. H. The director may adopt rules to allow the administration, at the director's discretion, to use a second opinion procedure under which surgery may not be eligible for coverage pursuant to this chapter without documentation as to need by at least two physicians or primary care practitioners. I. If the director does not receive bids within the amounts budgeted or if at any time the amount remaining in the Arizona health care cost containment system fund is insufficient to pay for full contract services for the remainder of the contract term, the administration, on notification to system contractors at least thirty days in advance, may modify the list of services required under subsection A of this section for persons defined as eligible other than those persons defined pursuant to section 36-2901, paragraph 6, subdivision (a). The director may also suspend services or may limit categories of expense for services defined as optional pursuant to title XIX of the social security act (P.L. 89-97; 79 Stat. 344; 42 United States Code section 1396 (1980)) for persons defined pursuant to section 36-2901, paragraph 6, subdivision (a). Such reductions or suspensions do not apply to the continuity of care for persons already receiving these services. J. All health and medical services provided under this article shall be provided in the geographic service area of the member, except: 1. Emergency services and specialty services provided pursuant to section 36-2908. 2. That the director may allow the delivery of health and medical services in other than the geographic service area in this state or in an adjoining state if the director determines that medical practice patterns justify the delivery of services or a net reduction in transportation costs can reasonably be expected. Notwithstanding the definition of physician as prescribed in section 36-2901, if services are procured from a physician or primary care practitioner in an adjoining state, the physician or primary care practitioner shall be licensed to practice in that state pursuant to licensing statutes in that state that are similar to title 32, chapter 13, 15, 17 or 25 and shall complete a provider agreement for this state. K. Covered outpatient services shall be subcontracted by a primary care physician or primary care practitioner to other licensed health care providers to the extent practicable for purposes including, but not limited to, making health care services available to underserved areas, reducing costs of providing medical care and reducing transportation costs. L. The director shall adopt rules that prescribe the coordination of medical care for persons who are eligible for system services. The rules shall include provisions for transferring patients and medical records and initiating medical care. M. Notwithstanding section 36-2901.08, monies from the hospital assessment fund established by section 36-2901.09 may not be used to provide chiropractic services as prescribed in subsection A, paragraph 15 of this section. N. Notwithstanding section 36-2901.08, monies from the hospital assessment fund established by section 36-2901.09 may not be used to provide diabetes outpatient self-management training services as prescribed in subsection A, paragraph 16 of this section. O. For the purposes of this section: , 1. "Ambulance" has the same meaning prescribed in section 36-2201. 2. "Tribal Facility" has the same meaning prescribed in section 36-2981.END_STATUTE Sec. 2. Section 36-2939, Arizona Revised Statutes, is amended to read: START_STATUTE36-2939. Long-term care system services; definitions A. The following services shall be provided by the program contractors to members who are determined to need institutional services pursuant to this article: 1. Nursing facility services other than services in an institution for tuberculosis or mental disease. 2. Notwithstanding any other law, behavioral health services if these services are not duplicative of long-term care services provided as of January 30, 1993 under this subsection and are authorized by the program contractor through the long-term care case management system. If the administration is the program contractor, the administration may authorize these services. 3. Hospice services. For the purposes of this paragraph, "hospice" means a program of palliative and supportive care for terminally ill members and their families or caregivers. 4. Case management services as provided in section 36-2938. 5. Health and medical services as provided in section 36-2907. 6. Dental services as follows: (a) Except as provided in subdivision (b) of this paragraph, in an annual amount of not more than $1,000 per member. (b) Subject to approval by the centers for medicare and medicaid services, for persons treated at an Indian health service or tribal facility, adult dental services that are eligible for a federal medical assistance percentage of one hundred percent and that are in excess of the limit prescribed in subdivision (a) of this paragraph. 7. Pursuant to the terms and conditions approved by the centers for medicare and medicaid services and subject to available funding, traditional healing services if both of the following apply: (a) The member qualifies for services through the indian health service or a tribal facility pursuant to the conditions of participation outlined in 42 code of federal regulations section 136.12. (b) The traditional healing service is delivered by or through the indian health service or a tribal facility. B. In addition to the services prescribed in subsection A of this section, the department, as a program contractor, shall provide the following services if appropriate to members who have a developmental disability as defined in section 36-551 and who are determined to need institutional services pursuant to this article: 1. Intermediate care facility services for a member who has a developmental disability as defined in section 36-551. For purposes of this article, a facility shall meet all federally approved standards and may only include the Arizona training program facilities, a state owned and operated service center, state owned or operated community residential settings and private facilities that contract with the department. 2. Home and community based services that may be provided in a member's home, at an alternative residential setting as prescribed in section 36-591 or at other behavioral health alternative residential facilities licensed by the department of health services and approved by the director of the Arizona health care cost containment system administration and that may include: (a) Home health, which means the provision of nursing services, licensed health aide services, home health aide services or medical supplies, equipment and appliances, that are provided on a part-time or intermittent basis by a licensed home health agency within a member's residence based on a physician's or allowed practitioner's orders and in accordance with federal law. Physical therapy, occupational therapy, or speech and audiology services provided by a home health agency may be provided in accordance with federal law. Home health agencies shall comply with federal bonding requirements in a manner prescribed by the administration. (b) Licensed health aide services, which means a home health agency service provided pursuant to subsection G of this section that is ordered by a physician or an allowed practitioner on the member's plan of care and provided by a licensed health aide who is licensed pursuant to title 32, chapter 15. (c) Home health aide, which means a service that provides intermittent health maintenance, continued treatment or monitoring of a health condition and supportive care for activities of daily living provided within a member's residence. (d) Homemaker, which means a service that provides assistance in the performance of activities related to household maintenance within a member's residence. (e) Personal care, which means a service that provides assistance to meet essential physical needs within a member's residence. (f) Day care for persons with developmental disabilities, which means a service that provides planned care supervision and activities, personal care, activities of daily living skills training and habilitation services in a group setting during a portion of a continuous twenty-four-hour period. (g) Habilitation, which means the provision of physical therapy, occupational therapy, speech or audiology services or training in independent living, special developmental skills, sensory-motor development, behavior intervention, and orientation and mobility in accordance with federal law. (h) Respite care, which means a service that provides short-term care and supervision available on a twenty-four-hour basis. (i) Transportation, which means a service that provides or assists in obtaining transportation for the member. (j) Other services or licensed or certified settings approved by the director. C. In addition to services prescribed in subsection A of this section, home and community based services may be provided in a member's home, in an adult foster care home as prescribed in section 36-401, in an assisted living home or assisted living center as defined in section 36-401 or in a level one or level two behavioral health alternative residential facility approved by the director by program contractors to all members who do not have a developmental disability as defined in section 36-551 and are determined to need institutional services pursuant to this article. Members residing in an assisted living center must be provided the choice of single occupancy. The director may also approve other licensed residential facilities as appropriate on a case-by-case basis for traumatic brain injured members. Home and community based services may include the following: 1. Home health, which means the provision of nursing services, home health aide services or medical supplies, equipment and appliances, that are provided on a part-time or intermittent basis by a licensed home health agency within a member's residence based on a physician's or allowed practitioner's orders and in accordance with federal law. Physical therapy, occupational therapy, or speech and audiology services provided by a home health agency may be provided in accordance with federal law. Home health agencies shall comply with federal bonding requirements in a manner prescribed by the administration. 2. Licensed health aide services, which means a home health agency service provided pursuant to subsection G of this section that is ordered by a physician or an allowed practitioner on the member's plan of care and provided by a licensed health aide who is licensed pursuant to title 32, chapter 15. 3. Home health aide, which means a service that provides intermittent health maintenance, continued treatment or monitoring of a health condition and supportive care for activities of daily living provided within a member's residence. 4. Homemaker, which means a service that provides assistance in the performance of activities related to household maintenance within a member's residence. 5. Personal care, which means a service that provides assistance to meet essential physical needs within a member's residence. 6. Adult day health, which means a service that provides planned care supervision and activities, personal care, personal living skills training, meals and health monitoring in a group setting during a portion of a continuous twenty-four-hour period. Adult day health may also include preventive, therapeutic and restorative health related services that do not include behavioral health services. 7. Habilitation, which means the provision of physical therapy, occupational therapy, speech or audiology services or training in independent living, special developmental skills, sensory-motor development, behavior intervention, and orientation and mobility in accordance with federal law. 8. Respite care, which means a service that provides short-term care and supervision available on a twenty-four-hour basis. 9. Transportation, which means a service that provides or assists in obtaining transportation for the member. 10. Home delivered meals, which means a service that provides for a nutritious meal that contains at least one-third of the recommended dietary allowance for an individual and that is delivered to the member's residence. 11. Other services or licensed or certified settings approved by the director. D. The amount of monies expended by program contractors on home and community based services pursuant to subsection C of this section shall be limited by the director in accordance with the federal monies made available to this state for home and community based services pursuant to subsection C of this section. The director shall establish methods for allocating monies for home and community based services to program contractors and shall monitor expenditures on home and community based services by program contractors. E. Notwithstanding subsections A, B, C, F and G of this section, a service may not be provided that does not qualify for federal monies available under title XIX of the social security act or the section 1115 waiver. F. In addition to services provided pursuant to subsections A, B and C of this section, the director may implement a demonstration project to provide home and community based services to special populations, including persons with disabilities who are eighteen years of age or younger, are medically fragile, reside at home and would be eligible for supplemental security income for the aged, blind or disabled or the state supplemental payment program, except for the amount of their parent's income or resources. In implementing this project, the director may provide for parental contributions for the care of their child. G. Consistent with the services provided pursuant to subsections A, B, C and F of this section and subject to approval by the centers for medicare and medicaid services, the director shall implement a program under which licensed health aide services may be provided to members who are under twenty-one years of age, who are eligible pursuant to section 36-2934, including members with developmental disabilities as defined in chapter 5.1, article 1 of this title, and who require continuous skilled nursing or skilled nursing respite care services. The licensed health aide services may be provided only by a parent, guardian or family member who is a licensed health aide employed by a medicare-certified home health agency service provider. Not later than sixty days after the approval of the rules implementing section 32-1645, subsection C, the director shall request any necessary approvals from the centers for medicare and medicaid services to implement this subsection and to qualify for federal monies available under title XIX of the social security act or the section 1115 waiver. The reimbursement rate for services provided under this subsection shall reflect the special skills needed to meet the health care needs of these members and shall exceed the reimbursement rate for home health aide services. H. Subject to section 36-562, the administration by rule shall prescribe a deductible schedule for programs provided to members who are eligible pursuant to subsection B of this section, except that the administration shall implement a deductible based on family income. In determining deductible amounts and whether a family is required to have deductibles, the department shall use adjusted gross income. Families whose adjusted gross income is at least four hundred percent and less than or equal to five hundred percent of the federal poverty guidelines shall have a deductible of two percent of adjusted gross income. Families whose adjusted gross income is more than five hundred percent of adjusted gross income shall have a deductible of four percent of adjusted gross income. Only families whose children are under eighteen years of age and who are members who are eligible pursuant to subsection B of this section may be required to have a deductible for services. For the purposes of this subsection, "deductible" means an amount a family, whose children are under eighteen years of age and who are members who are eligible pursuant to subsection B of this section, pays for services, other than departmental case management and acute care services, before the department will pay for services other than departmental case management and acute care services. I. For the purposes of this section: , 1. "Allowed practitioner" means a nurse practitioner who is certified pursuant to title 32, chapter 15, a clinical nurse specialist who is certified pursuant to title 32, chapter 15 or a physician assistant who is certified pursuant to title 32, chapter 25. 2. "Tribal facility" has the same meaning prescribed in section 36-2981.END_STATUTE Sec. 3. Section 36-2981, Arizona Revised Statutes, is amended to read: START_STATUTE36-2981. Definitions In this article, unless the context otherwise requires: 1. "Administration" means the Arizona health care cost containment system administration. 2. "Contractor" means a health plan that contracts with the administration to provide hospitalization and medical care to members according to this article or a qualifying plan. 3. "Director" means the director of the administration. 4. "Federal poverty level" means the federal poverty level guidelines published annually by the United States department of health and human services. 5. "Health plan" means an entity that contracts with the administration for services provided pursuant to article 1 of this chapter. 6. "Member" means a person who is eligible for and enrolled in the program, who is under nineteen years of age and whose gross household income meets the following requirements: (a) Beginning on October 1, 1999 through September 30, 2023, has income at or below two hundred percent of the federal poverty level. (b) Beginning on October 1, 2023 and for each fiscal year thereafter, subject to the approval of the centers for medicare and medicaid services, has income at or below two hundred twenty-five percent of the federal poverty level. 7. "Noncontracting provider" means an entity that provides hospital or medical care but does not have a contract or subcontract with the administration. 8. "Physician" means a person who is licensed pursuant to title 32, chapter 13 or 17. 9. "Prepaid capitated" means a method of payment by which a contractor delivers health care services for the duration of a contract to a specified number of members based on a fixed rate per member, per month without regard to the number of members who receive care or the amount of health care services provided to a member. 10. "Primary care physician" means a physician who is a family practitioner, general practitioner, pediatrician, general internist, obstetrician or gynecologist. 11. "Primary care practitioner" means a nurse practitioner who is certified pursuant to title 32, chapter 15 or a physician assistant who is licensed pursuant to title 32, chapter 25 and who is acting within the respective scope of practice of those chapters. 12. "Program" means the children's health insurance program. 13. "Qualifying plan" means a contractor that contracts with the state pursuant to section 38-651 to provide health and accident insurance for state employees and that provides services to members pursuant to section 36-2989, subsection A. 14. "Special health care district" means a special health care district organized pursuant to title 48, chapter 31. 15. "Tribal facility" means a facility that is operated by an Indian tribe or tribal organization and that is authorized to provide services pursuant to Public Law 93-638, as amended. END_STATUTE Sec. 4. Appropriation; 2025-2026; traditional healing services The sums of $1,300,000 from the state general fund and $__________________ from expenditure authority are appropriated to the Arizona health care cost containment system administration in fiscal year 2025-2026 for traditional healing services pursuant to sections 36-2907 and 36-2939, Arizona Revised Statutes, as amended by this act.
7081
7182 Be it enacted by the Legislature of the State of Arizona:
7283
7384 Section 1. Section 36-2907, Arizona Revised Statutes, is amended to read:
7485
7586 START_STATUTE36-2907. Covered health and medical services; modifications; related delivery of service requirements; rules; definitions
7687
7788 A. Subject to the limits and exclusions specified in this section, contractors shall provide the following medically necessary health and medical services:
7889
7990 1. Inpatient hospital services that are ordinarily furnished by a hospital to care for and treat inpatients and that are provided under the direction of a physician or a primary care practitioner. For the purposes of this section, inpatient hospital services exclude services in an institution for tuberculosis or mental diseases unless authorized under an approved section 1115 waiver.
8091
8192 2. Outpatient health services that are ordinarily provided in hospitals, clinics, offices and other health care facilities by licensed health care providers. Outpatient health services include services provided by or under the direction of a physician or a primary care practitioner, including occupational therapy.
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8394 3. Other laboratory and X-ray services ordered by a physician or a primary care practitioner.
8495
8596 4. Medications that are ordered on prescription by a physician or a dentist who is licensed pursuant to title 32, chapter 11. Persons who are dually eligible for title XVIII and title XIX services must obtain available medications through a medicare licensed or certified medicare advantage prescription drug plan, a medicare prescription drug plan or any other entity authorized by medicare to provide a medicare part D prescription drug benefit.
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8798 5. Medical supplies, durable medical equipment, insulin pumps and prosthetic devices ordered by a physician or a primary care practitioner. Suppliers of durable medical equipment shall provide the administration with complete information about the identity of each person who has an ownership or controlling interest in their business and shall comply with federal bonding requirements in a manner prescribed by the administration.
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89100 6. For persons who are at least twenty-one years of age, treatment of medical conditions of the eye, excluding eye examinations for prescriptive lenses and the provision of prescriptive lenses.
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91102 7. Early and periodic health screening and diagnostic services as required by section 1905(r) of title XIX of the social security act for members who are under twenty-one years of age.
92103
93104 8. Family planning services that do not include abortion or abortion counseling. If a contractor elects not to provide family planning services, this election does not disqualify the contractor from delivering all other covered health and medical services under this chapter. In that event, the administration may contract directly with another contractor, including an outpatient surgical center or a noncontracting provider, to deliver family planning services to a member who is enrolled with the contractor that elects not to provide family planning services.
94105
95106 9. Podiatry services that are performed by a podiatrist who is licensed pursuant to title 32, chapter 7 and ordered by a primary care physician or primary care practitioner.
96107
97108 10. Nonexperimental transplants approved for title XIX reimbursement.
98109
99110 11. Dental services as follows:
100111
101112 (a) Except as provided in subdivision (b) of this paragraph, for persons who are at least twenty-one years of age, emergency dental care and extractions in an annual amount of not more than $1,000 per member.
102113
103114 (b) Subject to approval by the centers for medicare and medicaid services, for persons treated at an Indian health service or tribal facility, adult dental services that are eligible for a federal medical assistance percentage of one hundred percent and that exceed the limit prescribed in subdivision (a) of this paragraph.
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105116 12. Ambulance and nonambulance transportation, except as provided in subsection G of this section.
106117
107118 13. Hospice care.
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109120 14. Orthotics, if all of the following apply:
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111122 (a) The use of the orthotic is medically necessary as the preferred treatment option consistent with medicare guidelines.
112123
113124 (b) The orthotic is less expensive than all other treatment options or surgical procedures to treat the same diagnosed condition.
114125
115126 (c) The orthotic is ordered by a physician or primary care practitioner.
116127
117128 15. Subject to approval by the centers for medicare and medicaid services, medically necessary chiropractic services that are performed by a chiropractor who is licensed pursuant to title 32, chapter 8 and that are ordered by a primary care physician or primary care practitioner pursuant to rules adopted by the administration. The primary care physician or primary care practitioner may initially order up to twenty visits annually that include treatment and may request authorization for additional chiropractic services in that same year if additional chiropractic services are medically necessary.
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119130 16. For up to ten program hours annually, diabetes outpatient self-management training services, as defined in 42 United States Code section 1395x, if prescribed by a primary care practitioner in either of the following circumstances:
120131
121132 (a) The member is initially diagnosed with diabetes.
122133
123134 (b) For a member who has previously been diagnosed with diabetes, either:
124135
125136 (i) A change occurs in the member's diagnosis, medical condition or treatment regimen.
126137
127138 (ii) The member is not meeting appropriate clinical outcomes.
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129140 17. pursuant to the terms and conditions approved by the centers for medicare and medicaid services and subject to available funding, traditional healing services, if both of the following apply:
130141
131142 (a) The member qualifies for services through the indian health service or tribal facility pursuant to the conditions of participation outlined in 42 code of federal regulations section 136.12.
132143
133144 (b) The traditional healing service is delivered by or through the indian health service or a tribal facility.
134145
135146 B. The limits and exclusions for health and medical services provided under this section are as follows:
136147
137148 1. Circumcision of newborn males is not a covered health and medical service.
138149
139150 2. For eligible persons who are at least twenty-one years of age:
140151
141152 (a) Outpatient health services do not include speech therapy.
142153
143154 (b) Prosthetic devices do not include hearing aids, dentures, bone-anchored hearing aids or cochlear implants. Prosthetic devices, except prosthetic implants, may be limited to $12,500 per contract year.
144155
145156 (c) Percussive vests are not covered health and medical services.
146157
147158 (d) Durable medical equipment is limited to items covered by medicare.
148159
149160 (e) Nonexperimental transplants do not include pancreas-only transplants.
150161
151162 (f) Bariatric surgery procedures, including laparoscopic and open gastric bypass and restrictive procedures, are not covered health and medical services.
152163
153164 C. The system shall pay noncontracting providers only for health and medical services as prescribed in subsection A of this section and as prescribed by rule.
154165
155166 D. The director shall adopt rules necessary to limit, to the extent possible, the scope, duration and amount of services, including maximum limits for inpatient services that are consistent with federal regulations under title XIX of the social security act (P.L. 89-97; 79 Stat. 344; 42 United States Code section 1396 (1980)). To the extent possible and practicable, these rules shall provide for the prior approval of medically necessary services provided pursuant to this chapter.
156167
157168 E. The director shall make available home health services in lieu of hospitalization pursuant to contracts awarded under this article. For the purposes of this subsection, "home health services" means the provision of nursing services, home health aide services or medical supplies, equipment and appliances that are provided on a part-time or intermittent basis by a licensed home health agency within a member's residence based on the orders of a physician or a primary care practitioner. Home health agencies shall comply with the federal bonding requirements in a manner prescribed by the administration.
158169
159170 F. The director shall adopt rules for the coverage of behavioral health services for persons who are eligible under section 36-2901, paragraph 6, subdivision (a). The administration acting through the regional behavioral health authorities shall establish a diagnostic and evaluation program to which other state agencies shall refer children who are not already enrolled pursuant to this chapter and who may be in need of behavioral health services. In addition to an evaluation, the administration acting through regional behavioral health authorities shall also identify children who may be eligible under section 36-2901, paragraph 6, subdivision (a) or section 36-2931, paragraph 5 and shall refer the children to the appropriate agency responsible for making the final eligibility determination.
160171
161172 G. The director shall adopt rules providing for transportation services and rules providing for copayment by members for transportation for other than emergency purposes. Subject to approval by the centers for medicare and medicaid services, nonemergency medical transportation shall not be provided except for stretcher vans and ambulance transportation. Prior authorization is required for transportation by stretcher van and for medically necessary ambulance transportation initiated pursuant to a physician's direction. Prior authorization is not required for medically necessary ambulance transportation services rendered to members or eligible persons initiated by dialing telephone number 911 or other designated emergency response systems.
162173
163174 H. The director may adopt rules to allow the administration, at the director's discretion, to use a second opinion procedure under which surgery may not be eligible for coverage pursuant to this chapter without documentation as to need by at least two physicians or primary care practitioners.
164175
165176 I. If the director does not receive bids within the amounts budgeted or if at any time the amount remaining in the Arizona health care cost containment system fund is insufficient to pay for full contract services for the remainder of the contract term, the administration, on notification to system contractors at least thirty days in advance, may modify the list of services required under subsection A of this section for persons defined as eligible other than those persons defined pursuant to section 36-2901, paragraph 6, subdivision (a). The director may also suspend services or may limit categories of expense for services defined as optional pursuant to title XIX of the social security act (P.L. 89-97; 79 Stat. 344; 42 United States Code section 1396 (1980)) for persons defined pursuant to section 36-2901, paragraph 6, subdivision (a). Such reductions or suspensions do not apply to the continuity of care for persons already receiving these services.
166177
167178 J. All health and medical services provided under this article shall be provided in the geographic service area of the member, except:
168179
169180 1. Emergency services and specialty services provided pursuant to section 36-2908.
170181
171182 2. That the director may allow the delivery of health and medical services in other than the geographic service area in this state or in an adjoining state if the director determines that medical practice patterns justify the delivery of services or a net reduction in transportation costs can reasonably be expected. Notwithstanding the definition of physician as prescribed in section 36-2901, if services are procured from a physician or primary care practitioner in an adjoining state, the physician or primary care practitioner shall be licensed to practice in that state pursuant to licensing statutes in that state that are similar to title 32, chapter 13, 15, 17 or 25 and shall complete a provider agreement for this state.
172183
173184 K. Covered outpatient services shall be subcontracted by a primary care physician or primary care practitioner to other licensed health care providers to the extent practicable for purposes including, but not limited to, making health care services available to underserved areas, reducing costs of providing medical care and reducing transportation costs.
174185
175186 L. The director shall adopt rules that prescribe the coordination of medical care for persons who are eligible for system services. The rules shall include provisions for transferring patients and medical records and initiating medical care.
176187
177188 M. Notwithstanding section 36-2901.08, monies from the hospital assessment fund established by section 36-2901.09 may not be used to provide chiropractic services as prescribed in subsection A, paragraph 15 of this section.
178189
179190 N. Notwithstanding section 36-2901.08, monies from the hospital assessment fund established by section 36-2901.09 may not be used to provide diabetes outpatient self-management training services as prescribed in subsection A, paragraph 16 of this section.
180191
181192 O. For the purposes of this section: ,
182193
183194 1. "Ambulance" has the same meaning prescribed in section 36-2201.
184195
185196 2. "Tribal Facility" has the same meaning prescribed in section 36-2981.END_STATUTE
186197
187198 Sec. 2. Section 36-2939, Arizona Revised Statutes, is amended to read:
188199
189200 START_STATUTE36-2939. Long-term care system services; definitions
190201
191202 A. The following services shall be provided by the program contractors to members who are determined to need institutional services pursuant to this article:
192203
193204 1. Nursing facility services other than services in an institution for tuberculosis or mental disease.
194205
195206 2. Notwithstanding any other law, behavioral health services if these services are not duplicative of long-term care services provided as of January 30, 1993 under this subsection and are authorized by the program contractor through the long-term care case management system. If the administration is the program contractor, the administration may authorize these services.
196207
197208 3. Hospice services. For the purposes of this paragraph, "hospice" means a program of palliative and supportive care for terminally ill members and their families or caregivers.
198209
199210 4. Case management services as provided in section 36-2938.
200211
201212 5. Health and medical services as provided in section 36-2907.
202213
203214 6. Dental services as follows:
204215
205216 (a) Except as provided in subdivision (b) of this paragraph, in an annual amount of not more than $1,000 per member.
206217
207218 (b) Subject to approval by the centers for medicare and medicaid services, for persons treated at an Indian health service or tribal facility, adult dental services that are eligible for a federal medical assistance percentage of one hundred percent and that are in excess of the limit prescribed in subdivision (a) of this paragraph.
208219
209220 7. Pursuant to the terms and conditions approved by the centers for medicare and medicaid services and subject to available funding, traditional healing services if both of the following apply:
210221
211222 (a) The member qualifies for services through the indian health service or a tribal facility pursuant to the conditions of participation outlined in 42 code of federal regulations section 136.12.
212223
213224 (b) The traditional healing service is delivered by or through the indian health service or a tribal facility.
214225
215226 B. In addition to the services prescribed in subsection A of this section, the department, as a program contractor, shall provide the following services if appropriate to members who have a developmental disability as defined in section 36-551 and who are determined to need institutional services pursuant to this article:
216227
217228 1. Intermediate care facility services for a member who has a developmental disability as defined in section 36-551. For purposes of this article, a facility shall meet all federally approved standards and may only include the Arizona training program facilities, a state owned and operated service center, state owned or operated community residential settings and private facilities that contract with the department.
218229
219230 2. Home and community based services that may be provided in a member's home, at an alternative residential setting as prescribed in section 36-591 or at other behavioral health alternative residential facilities licensed by the department of health services and approved by the director of the Arizona health care cost containment system administration and that may include:
220231
221232 (a) Home health, which means the provision of nursing services, licensed health aide services, home health aide services or medical supplies, equipment and appliances, that are provided on a part-time or intermittent basis by a licensed home health agency within a member's residence based on a physician's or allowed practitioner's orders and in accordance with federal law. Physical therapy, occupational therapy, or speech and audiology services provided by a home health agency may be provided in accordance with federal law. Home health agencies shall comply with federal bonding requirements in a manner prescribed by the administration.
222233
223234 (b) Licensed health aide services, which means a home health agency service provided pursuant to subsection G of this section that is ordered by a physician or an allowed practitioner on the member's plan of care and provided by a licensed health aide who is licensed pursuant to title 32, chapter 15.
224235
225236 (c) Home health aide, which means a service that provides intermittent health maintenance, continued treatment or monitoring of a health condition and supportive care for activities of daily living provided within a member's residence.
226237
227238 (d) Homemaker, which means a service that provides assistance in the performance of activities related to household maintenance within a member's residence.
228239
229240 (e) Personal care, which means a service that provides assistance to meet essential physical needs within a member's residence.
230241
231242 (f) Day care for persons with developmental disabilities, which means a service that provides planned care supervision and activities, personal care, activities of daily living skills training and habilitation services in a group setting during a portion of a continuous twenty-four-hour period.
232243
233244 (g) Habilitation, which means the provision of physical therapy, occupational therapy, speech or audiology services or training in independent living, special developmental skills, sensory-motor development, behavior intervention, and orientation and mobility in accordance with federal law.
234245
235246 (h) Respite care, which means a service that provides short-term care and supervision available on a twenty-four-hour basis.
236247
237248 (i) Transportation, which means a service that provides or assists in obtaining transportation for the member.
238249
239250 (j) Other services or licensed or certified settings approved by the director.
240251
241252 C. In addition to services prescribed in subsection A of this section, home and community based services may be provided in a member's home, in an adult foster care home as prescribed in section 36-401, in an assisted living home or assisted living center as defined in section 36-401 or in a level one or level two behavioral health alternative residential facility approved by the director by program contractors to all members who do not have a developmental disability as defined in section 36-551 and are determined to need institutional services pursuant to this article. Members residing in an assisted living center must be provided the choice of single occupancy. The director may also approve other licensed residential facilities as appropriate on a case-by-case basis for traumatic brain injured members. Home and community based services may include the following:
242253
243254 1. Home health, which means the provision of nursing services, home health aide services or medical supplies, equipment and appliances, that are provided on a part-time or intermittent basis by a licensed home health agency within a member's residence based on a physician's or allowed practitioner's orders and in accordance with federal law. Physical therapy, occupational therapy, or speech and audiology services provided by a home health agency may be provided in accordance with federal law. Home health agencies shall comply with federal bonding requirements in a manner prescribed by the administration.
244255
245256 2. Licensed health aide services, which means a home health agency service provided pursuant to subsection G of this section that is ordered by a physician or an allowed practitioner on the member's plan of care and provided by a licensed health aide who is licensed pursuant to title 32, chapter 15.
246257
247258 3. Home health aide, which means a service that provides intermittent health maintenance, continued treatment or monitoring of a health condition and supportive care for activities of daily living provided within a member's residence.
248259
249260 4. Homemaker, which means a service that provides assistance in the performance of activities related to household maintenance within a member's residence.
250261
251262 5. Personal care, which means a service that provides assistance to meet essential physical needs within a member's residence.
252263
253264 6. Adult day health, which means a service that provides planned care supervision and activities, personal care, personal living skills training, meals and health monitoring in a group setting during a portion of a continuous twenty-four-hour period. Adult day health may also include preventive, therapeutic and restorative health related services that do not include behavioral health services.
254265
255266 7. Habilitation, which means the provision of physical therapy, occupational therapy, speech or audiology services or training in independent living, special developmental skills, sensory-motor development, behavior intervention, and orientation and mobility in accordance with federal law.
256267
257268 8. Respite care, which means a service that provides short-term care and supervision available on a twenty-four-hour basis.
258269
259270 9. Transportation, which means a service that provides or assists in obtaining transportation for the member.
260271
261272 10. Home delivered meals, which means a service that provides for a nutritious meal that contains at least one-third of the recommended dietary allowance for an individual and that is delivered to the member's residence.
262273
263274 11. Other services or licensed or certified settings approved by the director.
264275
265276 D. The amount of monies expended by program contractors on home and community based services pursuant to subsection C of this section shall be limited by the director in accordance with the federal monies made available to this state for home and community based services pursuant to subsection C of this section. The director shall establish methods for allocating monies for home and community based services to program contractors and shall monitor expenditures on home and community based services by program contractors.
266277
267278 E. Notwithstanding subsections A, B, C, F and G of this section, a service may not be provided that does not qualify for federal monies available under title XIX of the social security act or the section 1115 waiver.
268279
269280 F. In addition to services provided pursuant to subsections A, B and C of this section, the director may implement a demonstration project to provide home and community based services to special populations, including persons with disabilities who are eighteen years of age or younger, are medically fragile, reside at home and would be eligible for supplemental security income for the aged, blind or disabled or the state supplemental payment program, except for the amount of their parent's income or resources. In implementing this project, the director may provide for parental contributions for the care of their child.
270281
271282 G. Consistent with the services provided pursuant to subsections A, B, C and F of this section and subject to approval by the centers for medicare and medicaid services, the director shall implement a program under which licensed health aide services may be provided to members who are under twenty-one years of age, who are eligible pursuant to section 36-2934, including members with developmental disabilities as defined in chapter 5.1, article 1 of this title, and who require continuous skilled nursing or skilled nursing respite care services. The licensed health aide services may be provided only by a parent, guardian or family member who is a licensed health aide employed by a medicare-certified home health agency service provider. Not later than sixty days after the approval of the rules implementing section 32-1645, subsection C, the director shall request any necessary approvals from the centers for medicare and medicaid services to implement this subsection and to qualify for federal monies available under title XIX of the social security act or the section 1115 waiver. The reimbursement rate for services provided under this subsection shall reflect the special skills needed to meet the health care needs of these members and shall exceed the reimbursement rate for home health aide services.
272283
273284 H. Subject to section 36-562, the administration by rule shall prescribe a deductible schedule for programs provided to members who are eligible pursuant to subsection B of this section, except that the administration shall implement a deductible based on family income. In determining deductible amounts and whether a family is required to have deductibles, the department shall use adjusted gross income. Families whose adjusted gross income is at least four hundred percent and less than or equal to five hundred percent of the federal poverty guidelines shall have a deductible of two percent of adjusted gross income. Families whose adjusted gross income is more than five hundred percent of adjusted gross income shall have a deductible of four percent of adjusted gross income. Only families whose children are under eighteen years of age and who are members who are eligible pursuant to subsection B of this section may be required to have a deductible for services. For the purposes of this subsection, "deductible" means an amount a family, whose children are under eighteen years of age and who are members who are eligible pursuant to subsection B of this section, pays for services, other than departmental case management and acute care services, before the department will pay for services other than departmental case management and acute care services.
274285
275286 I. For the purposes of this section: ,
276287
277288 1. "Allowed practitioner" means a nurse practitioner who is certified pursuant to title 32, chapter 15, a clinical nurse specialist who is certified pursuant to title 32, chapter 15 or a physician assistant who is certified pursuant to title 32, chapter 25.
278289
279290 2. "Tribal facility" has the same meaning prescribed in section 36-2981.END_STATUTE
280291
281292 Sec. 3. Section 36-2981, Arizona Revised Statutes, is amended to read:
282293
283294 START_STATUTE36-2981. Definitions
284295
285296 In this article, unless the context otherwise requires:
286297
287298 1. "Administration" means the Arizona health care cost containment system administration.
288299
289300 2. "Contractor" means a health plan that contracts with the administration to provide hospitalization and medical care to members according to this article or a qualifying plan.
290301
291302 3. "Director" means the director of the administration.
292303
293304 4. "Federal poverty level" means the federal poverty level guidelines published annually by the United States department of health and human services.
294305
295306 5. "Health plan" means an entity that contracts with the administration for services provided pursuant to article 1 of this chapter.
296307
297308 6. "Member" means a person who is eligible for and enrolled in the program, who is under nineteen years of age and whose gross household income meets the following requirements:
298309
299310 (a) Beginning on October 1, 1999 through September 30, 2023, has income at or below two hundred percent of the federal poverty level.
300311
301312 (b) Beginning on October 1, 2023 and for each fiscal year thereafter, subject to the approval of the centers for medicare and medicaid services, has income at or below two hundred twenty-five percent of the federal poverty level.
302313
303314 7. "Noncontracting provider" means an entity that provides hospital or medical care but does not have a contract or subcontract with the administration.
304315
305316 8. "Physician" means a person who is licensed pursuant to title 32, chapter 13 or 17.
306317
307318 9. "Prepaid capitated" means a method of payment by which a contractor delivers health care services for the duration of a contract to a specified number of members based on a fixed rate per member, per month without regard to the number of members who receive care or the amount of health care services provided to a member.
308319
309320 10. "Primary care physician" means a physician who is a family practitioner, general practitioner, pediatrician, general internist, obstetrician or gynecologist.
310321
311322 11. "Primary care practitioner" means a nurse practitioner who is certified pursuant to title 32, chapter 15 or a physician assistant who is licensed pursuant to title 32, chapter 25 and who is acting within the respective scope of practice of those chapters.
312323
313324 12. "Program" means the children's health insurance program.
314325
315326 13. "Qualifying plan" means a contractor that contracts with the state pursuant to section 38-651 to provide health and accident insurance for state employees and that provides services to members pursuant to section 36-2989, subsection A.
316327
317328 14. "Special health care district" means a special health care district organized pursuant to title 48, chapter 31.
318329
319330 15. "Tribal facility" means a facility that is operated by an Indian tribe or tribal organization and that is authorized to provide services pursuant to Public Law 93-638, as amended. END_STATUTE
320331
321332 Sec. 4. Appropriation; 2025-2026; traditional healing services
322333
323334 The sums of $1,300,000 from the state general fund and $__________________ from expenditure authority are appropriated to the Arizona health care cost containment system administration in fiscal year 2025-2026 for traditional healing services pursuant to sections 36-2907 and 36-2939, Arizona Revised Statutes, as amended by this act.