AZ Legislative Update – March 21, 2025
Posted by [email protected] on Mar. 21, 2025 / Subscribe 0
Today marks the 68th day of the Arizona 57th Legislature, 1st Regular Session and next week is the final week for bills to be heard in committee. Bills that have not been heard in committee (other than the appropriations committees) by Thursday will be considered dead. Moving forward, all legislative activity will have to occur on the floor or through a conference committee.
With the end of committees in sight, much of the attention at the Capitol will now shift to the budget. While there had been some optimism for a fairly quick budget process, tensions between the Governor and the Legislature have been rising. Over the last couple of weeks, the Governor and GOP legislative leadership have been trading barbs over several supplemental appropriations requests from the Governor to cover a number of underfunded programs. Republican legislators have accused the Governor of mismanaging the budget, while the Governor has called the practice of requesting additional funding a common practice. Lawmakers will have until June 30th to pass a balanced budget. While there is currently no semblance of a deal, when it comes to the budget, things are rather fluid and can evolve rapidly.
In the meantime, below, please find a few bills that we would like to highlight.
HB 2175 Claims; Prior Authorization; Conduct (Willoughby): HB 2175 passed out of the Senate Finance Committee on Monday, 5-2. A strike-everything amendment will be offered to the bill that will requires a medical director or provider, before a health care insurer may deny a claim that involves medical necessity or experimental status or that requires the use of medical judgment, to individually review the denial. It requires a medical director or provider, before a health care insurer may issue a direct denial of a prior authorization that involves medical necessity or experimental status or that requires the use of medical judgment, to individually review the denial. Additionally, the bill requires, during each individual review of a prior authorization or claim denial, the medical director or provider to exercise independent medical judgment and prohibits the director or provider from relying solely on recommendations derived from any other source.
HB 2109 Forced Organ Harvesting; Insurance; Prohibition (Biasiucci): HB 2190 passed out of the Senate Health & Human Services Committee on Wednesday, 4-3. The bill would allow insurance policies, including those from the Arizona Health Care Cost Containment System (AHCCCS), to limit coverage for human organ transplants or post-transplant care under certain conditions. These conditions include if the transplant operation occurs in the People's Republic of China or Hong Kong, or if the organ was procured through sale or donation from those regions. The bill clarifies that these limitations do not require coverage for organ transplants and do not restrict insurers from denying coverage for valid reasons. Additionally, the bill would establish the "Arizona End Organ Harvesting Act," which aims to prohibit insurance coverage for organ transplants that meet the specified criteria. The amendments would be made to various sections of Title 20 and Title 36 of the Arizona Revised Statutes, ensuring that the new provisions are integrated into the existing legal framework.
HB 2693 Genetic Sequencing; Insurance; Prohibition (Biasiucci): HB 2693 passed out the Senate Health & Human Services Committee on Wednesday, 4-3. The bill establishes insurance coverage and Arizona Health Care Cost Containment System (AHCCCS) limitations on genetic sequencing. HB 2693 outlines prohibitions and requirements for health care institutions and research facilities relating to genetic sequencers and software used for genetic sequencing.
SB 1291 Health Insurers; Provider Credentialing; Claims (Angius): SB 1291 passed out of the House Health & Human Services Committee on Monday, 11-0. The bill proposes significant updates to the current statutes regarding health care provider credentialing and claims processing. Under the new provisions, health insurers would be required to complete the credentialing process within 60 calendar days and load the applicant's information into their billing system within 30 days of receiving a complete credentialing application. Additionally, insurers must acknowledge receipt of applications within seven days and provide detailed notices for any incomplete applications. The bill also stipulates that if a credentialing application is incomplete, insurers must inform the applicant within the same seven-day timeframe and outline the necessary steps to complete the application. Moreover, the bill introduces new requirements for claims processing, mandating that health insurers treat claims from providers who have applied for credentialing as in-network claims if certain conditions are met. These conditions include the provider rendering services to an eligible health plan member after receiving notice of a complete credentialing application and not submitting the claim until after a fully executed network participation contract is in place. The bill also clarifies that health insurers are not liable for claims submitted outside of the contractually required time period if submitted within one year of the service date, and it requires providers to disclose their credentialing status and estimated costs to patients prior to service.
SB 1347 AHCCCS; Noncontracting Providers; Reimbursement; Prohibition (Shope): A strike-everything amendment will be added to SB 1347 in the House Health & Human Service Committee on Monday. This problematic language stipulates that a contractor must reimburse a noncontracting provider for laboratory services rendered to a member who is enrolled with the contractor if the member was referred by a contracted provider. Under the bill, a contractor may not require prior authorization for diagnostic services. Additionally, a contractor may not take or threaten to take retaliatory action against a contracted provider for referring a member to a noncontracted provider.
Insurance Operations
HB 2054 DIFI; Financial Enterprises; Insurance; Compact (Livingston): HB 2054 will be heard in the Senate Finance Committee on Monday. An amendment will be added in committee to address the new way in which DIFI views/interprets service contracts and insurance policies. The amendment will now require a separate endorsement for service contracts. Additionally, the amendment will include language that Representative Livingston and Representative Stahl Hamilton have been working on to create the Fire Insurance Review Task Force along with underwriting guidelines, including reporting requirements and task force duties to address the issue of insurance availability in high fire risk areas throughout the state. A floor amendment will follow with some language to deal with DIFI’s new position on Advisory Organizations. As currently drafted, HB 2054 would update current statutes related to the Department of Insurance and Financial Institutions by changing the licensure year for consumer lenders, escrow agents, and advance fee loan brokers from a fiscal year to a calendar year. Specifically, it would require license renewals to be submitted by December 31 instead of June 30, with expiration dates for several licenses adjusted to January 31. Additionally, the bill would remove references to license continuation dates and allow certain active licensees to defer renewal until December 31, 2025, if their licenses were set to expire by June 30 or September 30, 2025. Moreover, the bill would grant the DIFI director the discretion to adopt rules regarding money transmitters and other insurance-related requirements, rather than making it mandatory. It would also modify reporting requirements for risk retention groups and eliminate Arizona's opt-out status from uniform standards for long-term care insurance products. Outdated language concerning renewal processes and penalties would be replaced with clearer stipulations about late fees and consequences for failing to renew on time, ultimately aiming to streamline the licensing process and enhance regulatory efficiency.
HB 2210 DIFI; Continuation (Livingston): HB 2210 passed out of the Senate Finance Committee on Monday, 6-1. The bill continues the Arizona Department of Insurance and Financial Institutions for an additional 8 years.
HB 2228 Jurors; Peremptory Challenge; Civil Action (Hendrix): HB 2228 will be heard on Wednesday in the Senate Judiciary & Elections Committee. The bill restores peremptory challenges for civil cases in Arizona. The bill stipulates that each party is entitled to four peremptory challenges. Beginning with the plaintiff, each party shall alternate striking jurors until all the challenges are used or waved. Under HB 2228, the court may allow a party additional peremptory challenges if two or more parties on the same side have adverse or hostile interests. If the court allows a party an additional peremptory challenge, the court shall allow an equal number of peremptory challenges to the party or parties on the other side.
SB 1094 Business; Discrimination Prohibition; Social Criteria (Hoffman): SB 1094 will be heard in the House Commerce Committee on Tuesday. This problematic bill proposes to amend existing Arizona statutes by adding new sections that prohibit discrimination by financial institutions, insurers, and credit reporting agencies based on political affiliation and various social credit scores. Specifically, it introduces provisions that ensure these entities cannot refuse service or discriminate against individuals based on their political beliefs or scores related to social justice, environmental impact, or governmental criteria. Additionally, the bill allows these institutions to offer products or services that include subjective standards, provided that such standards are fully disclosed to customers prior to contract agreements. Furthermore, the bill emphasizes that the practice of discrimination based on social credit scores is a matter of statewide concern, asserting that it threatens the rights of individuals and the foundational principles of a democratic state. It clarifies that these new regulations do not impede the ability of these institutions to refuse service when necessary for the safety of their employees. If this were to pass, the Governor would likely veto the bill.
SB 1215 Litigation; Financing; Consumer Protection; Enforcement (Leach): SB 1215 will be heard in the House Judiciary Committee on Wednesday. The bill would update current statutes by introducing new consumer protection measures and disclosure requirements for litigation financing agreements. Specifically, it would mandate that all parties involved in such agreements disclose their existence and the identity of the litigation financier to other parties in the action. Additionally, the bill would prohibit litigation financiers from influencing litigation strategy, choice of counsel, or expert witnesses, ensuring that control remains with the named party and their legal representation. The bill also requires courts to consider potential conflicts of interest in class actions and multidistrict litigation arising from these financing arrangements.
0 Comments