Assigned to APPROP                                                                                                                                   AS ENACTED

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED
FACT SHEET FOR H.B. 2635/S.B. 1582

 

omnibus budget reconciliation; health.

 

Purpose

 

Makes statutory and session law changes necessary for the implementation of budget measures relating to public health programs.

 

Provisions

 

Tobacco Tax Withdrawals

 

1.      Requires the Arizona Health Care Cost Containment System (AHCCCS) to withdraw, from the medically needy account of the tobacco tax and health care fund, the following amounts for the following items in FY 2001-2002 and FY 2002-2003:

 

Item

FY 2001-2002

FY 2002-2003

Continue phase-out of the quick pay discount

$10,398,200

$11,630,000

Discontinue annual discount on private hospital reimbursement

 

$10,000,000

 

$10,000,000

Provide coverage for extended maternity length of stay

$4,422,600

$4,555,300

Fund HIV/AIDS drug treatment

$1,349,600

$1,349,600

Replace federal funding reduced due to lower federal matching assistance percentages (FMAP) for prior fiscal years

 

 

$4,542,200

 

 

$4,542,200

Fund 50 per cent of cost of medical inflation

$5,276,000

$5,276,000

To be deposited in the children’s health insurance program (CHIP) fund for the state match

Up to

$18,384,600

 

$21,944,100

Transfer to Department of Health Services (DHS) for AIDS medications provided through Arizona drug assistance program

 

 

$1,000,000

 

 

$1,000,000

Transfer to DHS for non-Title XIX psychotropic medications

$8,000,000

$8,000,000

Transfer to DHS for community health centers

$1,000,000

 

Transfer to DHS for statewide immunization information system

 

$477,000

 

$477,000

Transfer to DHS for Hepatitis C disease surveillance

$350,000

$350,000

 

 

 

Hospital Pilot Program

 

2.      Reinstates the hospital pilot reimbursement program beginning October 1, 2001 through September 30, 2003. (Originally established in 1997, this program expired on October 1, 2000.)

 

·        Directs AHCCCS to require prepaid capitated providers in Maricopa and Pima counties to enter into contracts with one or more hospitals and negotiate reimbursement rates and terms for inpatient hospital services.

·        Requires, in the absence of a contract, reimbursement to be made on a payment arrangement based on 95 percent of the AHCCCS fee-for-service rate.

 

Miscellaneous

 

3.      Sets the FY 2001-2002 and FY 2002-2003 total county acute care contribution at $66,689,500 and specifies the individual county contribution rates

 

4.      Permits the $10 million appropriation from the temporary assistance to needy family block grant in FY 2000-2001 to the joint substance abuse treatment fund under Law 2000, Chapter 382 (S.B. 1280) to be expended until June 30, 2002.  (Expenditure authority currently expires at the end of FY 2000-2001.)

 

5.      Maintains the telecommunications devices for the deaf (TDD) tax levy at 1.1 percent for FY 2001-2002 and FY 2002-2003. Continues to deposit 0.8 percent into the telecommunications fund for the deaf and 0.3 percent into the poison control fund administered by DHS, subject to legislative appropriation.

 

6.      Provides for a general effective date.

 

Senate Action                                                               House Action

 

APPROP         4/11/01    DP     11-1-0                       APPROP         4/11/01     DP     8-5-2-1

3rd Read           4/12/01              24-6-0                       3rd Read           4/11/01               49-7-4-0

              (H.B. 2635 substituted)

 

Signed by the Governor 4/24/01

Chapter 234

 

Prepared by Senate Staff

May 7, 2001