AZ Legislative Update – May 16, 2025
Posted by [email protected] on May. 19, 2025 / Subscribe 0
Friday marked the 124th day of the Arizona 57th Legislature, 1st Regular Session. Of the 1,679 bills introduced this year, the Legislature has now passed 351 with Governor Hobbs signing 214 and vetoing 137.
Hobbs is now only 6 vetoes away from matching the all-time single session veto record which she set in her first legislative session in 2023 (143 vetoes).
Both legislative chambers were on recess this past week; however, the House will return to work on Monday. That being said, the level of floor activity will be minimal with only a small number of bills remaining. The Senate will continue to be off for another week, and they plan to return to action on Wednesday, May 28th.
While nothing appears to be imminent with regards to the budget, we are hearing that lawmakers remain optimistic that a deal will get done soon on a FY 2026 spending package. Once a deal is reached, we anticipate that session will wrap up rather quickly.
Governor Hobbs Sounds Off on Potential Medicaid Cuts
Earlier this week Governor Hobbs reiterated her concerns with regards to the federal proposal to reduce Medicaid funding. Hobbs warned that such cuts could lead to significant losses in healthcare coverage for Arizonans. She highlighted that Arizona could see over 660,000 residents lose their health insurance, including 190,000 children and 47,000 rural residents. Additionally, more than one in six seniors could lose their nursing home care. Hobbs in an interview said, “these Medicaid cuts will kill people, and there is not a state in the country, I don’t believe, that has the capacity to absorb these kind of cuts. Certainly, Arizona can’t. We might be able to put some Band-aids for a little while, but we can’t absorb the impact.
Health Insurance
HB 2175 Claims; Prior Authorization; Conduct (Willoughby): HB 2175 was signed by the Governor on Monday. The bill updates to current statutes regarding the denial of claims and prior authorizations by health care insurers. Specifically, it mandates that before a health care insurer can deny a claim based on medical necessity, the medical director must individually review the denial and exercise independent medical judgment, without relying solely on external recommendations. This requirement is similarly applied to direct denials of prior authorizations involving medical necessity. Additionally, the bill introduces new sections to the Arizona Revised Statutes, specifically adding sections 20-3103 and 20-3407, which outline these requirements. The effective date for these changes is set for July 1, 2026.
HB 2332 Postpartum Health; Education; Advisory Committee (Willoughby): HB 2332 was signed by the Governor on Tuesday. The bill would update current statutes by mandating the Department of Health Services (DHS) to compile and disseminate educational materials on maternal mental health conditions, particularly postpartum depression. This includes the establishment of an Advisory Committee on Obstetrics, Gynecology, and Maternal Mental Health in Rural Communities, which will develop recommendations to improve access to health services in underserved areas. The bill requires healthcare institutions to provide these educational materials to new parents upon discharge and to offer them to pregnant women or those exhibiting signs of maternal mental health disorders. Additionally, the bill introduces specific requirements for the composition and duties of the Advisory Committee, including the appointment of various healthcare representatives and a deadline for submitting a report on its findings by December 31, 2026. It also replaces existing language regarding postpartum depression treatment by insurers with a focus on educational outreach, emphasizing awareness and prevention. The Advisory Committee is set to be repealed on July 1, 2027, ensuring a temporary but targeted initiative to enhance maternal mental health resources.
Insurance Operations
SB 1094 Business; Discrimination Prohibition; Social Criterial (Hoffman): SB 1094 was vetoed by the Governor on Monday. SB 1094 prohibits financial institutions, insurers, and credit reporting agencies from discriminating against individuals based on political affiliation or various social credit scores. Specifically, it would insert new sections into Title 6, Title 20, and Title 44 of the Arizona Revised Statutes, establishing that these entities cannot discriminate based on these criteria, while also allowing them to offer subjective investments or services as long as the criteria are disclosed. Additionally, the bill emphasizes that discrimination based on social credit scores is a matter of statewide concern, asserting that such practices threaten the rights of Arizona's inhabitants and the foundations of a democratic state. It also clarifies that these prohibitions do not prevent these entities from refusing business when necessary for employee safety.
0 Comments