AZ Legislative Update – April 11, 2025
Posted by [email protected] on Apr. 15, 2025 / Subscribe 0
Friday marked the 89th day of the Arizona 57th Legislature, 1st Regular Session. Of the 1,677 bills introduced this year, the Legislature has now passed 73 with Governor Hobbs signing 51, vetoing 4, and 18 are still awaiting action.
While we are quickly approaching the 100th day (typical target date to end session), it appears we are still quite a ways away from sine die. With no budget deal in sight and session expected to drag on awhile longer, Republican leadership will limit the number of bills that go to the floor each week.
As for the FY 2026 budget, negotiations between GOP leadership and the Governor have not been fruitful. That being said, the process remains rather fluid, and things can change quickly.
In the meantime, below, please find a few bills that we would like to highlight.
DIFI Director Confirmation Rejected in Committee
Senator Bravo Resigns from Senate Leadership
Senator Flavio Bravo on Tuesday announced that he is stepping down from his post as assistant minority leader; however, he’ll continue to serve in the Senate as a rank and file member. While Bravo cited his growing family and his desire to focus on his legislative district as the reasons why he is stepping away from his leadership role, reportedly some Senate Democrats had recently expressed concerns over his moderate positions on a number of votes. Senator Catherine Miranda (D-Laveen) was selected by the caucus as his replacement in leadership.
Health Insurance
HB 2693 Genetic Sequencing; Insurance; Prohibition (Biasiucci): HB 2693 passed out of the Senate Committee of the Whole on Wednesday. The bill allows an insurer and the Arizona Health Care Cost Containment System to limit coverage for genetic sequencing if the company or operation is associated with a foreign adversary. Establishes 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 Committee of the Whole on Thursday. The bill requires a health insurer to conclude the provider credentialing process within 60 calendar days and load the applicant's information into the insurer's billing system within 30 calendar days, rather than 100 calendar days, upon receipt of a complete credentialing application. The bill requires a health insurer, within seven calendar days of receiving a credentialing application, to contact the applicant in writing or electronically to acknowledge receipt of the application and inform the applicant whether the application is a complete credentialing application. SB 1291 requires credentialing applicants to include the email address of an individual who can address discrepancies in the application. The bill specifies that a health insurer must include a detailed list of all incomplete items in its incomplete credentialing application notices. SB 1291 specifies that, if a credentialing application is incomplete and requires additional information from the applicant, the health insurer must contact the applicant within seven calendar days to acknowledge receipt of the submitted additional information and inform the applicant whether the application is complete. The bill requires health insurers to communicate the withdrawal of an application to the applicant within 7 calendar days, if the insurer has not received any response from the applicant providing the requested information within 30 calendar days. The bill specifies that, if the time period for processing a credentialing application is tolled while the health insurer waits for additional information, the health insurer must acknowledge, in writing or electronically, receipt of the additional information within seven calendar days. SB 1291 forbids health insurers from tolling the required application processing time period more than three times. The bill permits a health insurer to deem an application withdrawn if, after the third toll, the insurer has not received a response from the applicant with additional information within 30 calendar days. The bill permits a health insurer to deem an application withdrawn if, after the third toll, the insurer has not received a response from the applicant with additional information within 30 calendar days. It permits a provider to receive payment from a health insurer for services provided from the date included on the notice of a complete credentialing application to the date the provider's network participation contract is executed. The bill directs a health insurer to process a provider's claim as an in-network claim and pay the claim if the provider:
a) has applied for credentialing and renders a covered service to an individual who is an eligible health plan member on the date of service;
b) renders the service on or after the date that the health insurer notified the provider of a complete credentialing application; and
c) does not submit the claim until after the provider has a fully executed network participation contract with the health insurer for the member's health plan network and the health insurer has approved the provider's credentials.
The bill forbids, for claims submitted within one year after the date of service, health insurers from denying a provider's claim that is submitted in compliance with statute on the basis that the claim was not submitted within the contractually required time period. SB 1291 clarifies that health insurers are not required to reimburse an applicant at the in network rate for any covered medical services provided by the applicant if the applicant's credentialing application is not approved or the health care provider is unwilling to contract with the insurer on mutually acceptable terms. The bill requires, within a reasonable period before a health care provider provides services to a patient in a network facility, the provider or the provider's representative to provide a written, dated disclosure that includes the name of the billing health care provider, the total estimated cost to be billed by the health care provider or the provider's representative, and a statement that the provider is not credentialed and is not a contract provider. SB 1291 excludes a health insurer that does not credential a provider from civil liability for any act or omission of the provider in rendering services to a member. The bill repeals statute that prohibits a health insurer from denying a claim for a covered service provided to a subscriber by a participating provider who has a fully executed contract with a network plan if the services are provided after the date of approval of the credentialing application. SB 1291 redefines credentialing as a complete credentialing application that includes all information, any required supporting documentation and a current authorization to access electronic documentation that a health insurer needs in order to process the credentialing request through a credentialing system that is developed by a nationally recognized alliance of health plans and trade association and a nonprofit organization that is incorporated as a mutual health care corporation that is working to streamline the business of health care.
Insurance Operations
SB 1094 Business; Discrimination Prohibition; Social Criteria (Hoffman): SB 1094 passed out of the House Committee of the Whole on Wednesday. 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.
0 Comments