HB2585 - 451R - House Bill Summary

House of Representatives

HB 2585

AHCCCS; eligibility; programs

Sponsors: Representatives Knaperak, Anderson, O'Halleran, et al.

DPA	Committee on Health
X	Committee on Approp
	Caucus and COW	This bill as introduced contains *an Appropriation clause.*
	As Passed the House

* REVISED *

Beginning September 30, 2000, HB 2585 removes the demonstration project status of the Arizona Health Care Cost Containment System (AHCCCS) Premium Sharing health care benefits program and continues the project as a permanent and statewide program. The bill increases Premium Sharing eligibility requirements from 0-200% of Federal Poverty Level (FPL) to 0-250% of FPL. The adjusted eligibility considers the participants who will be covered under the Proposition 204 initiative and expands eligibility for new populations from 200 to 250% FPL.

HB 2585 requires that rules be developed for a uniform application process for Premium Sharing, The Children’s Health Insurance Program (KidsCare) and Healthcare Group through AHCCCS. The bill appropriates $28 million from the medically needy fund each year for the program.

History

The Premium Sharing Program was established as a three year pilot program in 1997 (Laws 1997, Chapter 186, Section 3, as amended by Laws 1997, second special session, Chapter 1, Section 1). The program enables families who do not meet AHCCCS requirements but who have an income of less than 200% of the federal poverty level, to obtain low cost health care. Participants pay a monthly premium based on a percentage of gross monthly income and copayments for services. The program currently operates in Maricopa, Pima, Pinal and Cochise counties.

Enrollment for services as of February 1, 2001 includes 7,342 members, 182 who have chronic illnesses such as hemophilia or Hodgkins disease. The current enrollment in the demonstration project is Cochise County 11.5%, Maricopa County 47.1%, Pima County 33.4% and Pinal County 7.8%. Premium Sharing has been funded with $20 million annually from the medically needy fund.

Provisions

· Continues and expands the Premium Sharing Program on a statewide, permanent basis.

· AHCCCS shall withdraw $28 million from the tobacco tax allocation each FY for the program fund. Enrollment in Premium Sharing is limited by the appropriation amount.

· Costs associated with the healthcare group plans shall be included in the premium sharing program fund.

· Monies that are collected pursuant to the tobacco litigation master settlement agreement are designated for the program and shall be deposited in the program fund.

· The language used to create A.R.S. Sections 36-2923.01 through 36-2923.03 comes from the session laws used for the demonstration project.

· Increases, from 200% FPL to 250% FPL, the income eligibility threshold for applicants who do not have a specific chronic disease.

· Increases the percentage of gross monthly income of a member that may be used to contribute to the premium contribution from 4% to 5%.

· Requires the administration to use up to one-half of one percent of the annual appropriation on marketing and outreach.

· Provides the director of AHCCCS an exemption from rule making for one year to implement the legislation.

· Repeals session laws pertaining to the premium sharing demonstration project.

· Effective date of legislation is September 30, 2001.

· Makes numerous conforming and technical changes.

HB 2585 was amended in the Health Committee as follows:

· Streamlines eligibility with AHCCCS program for presumptive eligibility to conform to the “no wrong door policy”.

· Raises the maximum premium amount based on a percentage of gross monthly income from 4 to 6%. The actual rates are determined by the administration.

· Allows the director to set minimum time period during which an eligible person’s family member may enroll who has been involuntarily dropped from insurance. The current statute requires at least six months.

· Removes unnecessary language.

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· 45th Legislature