Arizona Legislative Update – Friday, January 30, 2026
Posted by [email protected] on Jan. 30, 2026 / Subscribe 0
Today marks the 19th day of the Arizona 57th Legislature, Second Regular Session. With only three weeks remaining for bills to be heard in their committees of origin, legislative activity at the Capitol is quickly intensifying.
Standing committee agendas will become significantly busier in the coming weeks as leadership and committee chairs work through the more than 1,614 bills and 113 resolutions introduced by members. Senators have until Monday, February 2 to introduce legislation, and House members have until Friday, February 6 to do so, absent special permission from the Senate President or the Speaker of the House.
Below are several bills we would like to highlight, some of which are scheduled for committee hearings or floor consideration this week.
Health Insurance
HB 2194 Claims; Prior Authorization; Denials; Contact (Bliss): HB 2194 will be heard in the House Health & Human Services on Monday. The bill requires health insurers to provide a contact method, such as a telephone number or email address, for inquiries related to denied claims. Additionally, insurers must respond substantively to questions about these denials within two business days of receiving the inquiries. The provisions are set to take effect on June 30, 2027.
HB 2965 Covered Entities; 340B Drugs; Distribution (Lopez): HB 2965 was introduced earlier this week. The bill prohibits drug manufacturers, repackagers, and their affiliates from restricting or interfering with the acquisition or delivery of federally discounted 340B drugs to eligible covered entities and their contracted pharmacies, unless such limits are required by federal law. The bill also bars manufacturers from conditioning access to 340B drugs on the submission of claims or utilization data, except where federally mandated. Enforcement authority is granted to the Arizona State Board of Pharmacy and the Attorney General, with each improperly restricted package treated as a separate violation. The measure does not create a private right of action and is expressly intended to align with, and not be less restrictive than, applicable federal law, while allowing limited distribution when required under federal safety or controlled-substance rules.
SB 1545 Pharmacy Benefit Managers; Pharmacy Permits (Shamp): SB 1545 was introduced earlier this week. The bill prohibits pharmacy benefit managers (PBMs) from directly or indirectly owning or holding permits for retail pharmacies in Arizona and requires the Arizona State Board of Pharmacy to revoke or deny renewal of any permit held in violation of this prohibition. The bill allows the Board to issue temporary limited-service pharmacy permits when necessary to ensure patient access to rare, orphaned, or limited-distribution drugs that would otherwise be unavailable. It directs the Board to adopt rules, conduct assessments of existing pharmacy permits, and provide advance notice to affected pharmacies, patients, and prescribers ahead of required divestiture or closure. Certain employer-based pharmacy arrangements are exempted from the prohibition. The act would take effect after December 31, 2026.
SB 1628 Claims Denial; Prior Authorization; Report (Angius): SB 1624 was introduced earlier this week. The bill expands reporting and transparency requirements for health care insurers and health care services plans related to claims denials and prior authorization practices. The bill requires insurers and plans to annually report detailed, aggregated data to the Department of Insurance, including denial rates, appeals, reversals, common denied services, and reasons for denials, with additional timing metrics for prior authorization decisions. The Department must compile and publicly post standardized, plain-language reports identifying each reporting entity and provide those reports to legislative leadership. The legislation also updates existing claims grievance reporting timelines by shifting the annual public posting deadline from August 1 to October 1 and applies those changes retroactively to claims activity after June 30, 2026. Finally, the bill directs the Department to convene a stakeholder review in 2032 to evaluate the usefulness of the data and recommend whether the reporting requirements should be amended, repealed, or maintained.
Insurance Operations
HB 2091 Financial Surveillance Fund; Insurer Examinations (Livingston): HB 2091 passed out of the House Committee of the Whole on Thursday morning. The bill updates ARS 20-156 to modernize the assessment structure that funds the Arizona Department of Insurance and Financial Institutions and specifically its ongoing financial surveillance of domestic insurers. The Arizona insurance industry has encouraged these updates to ensure that DIFI has the resources, staffing, and expertise necessary to maintain strong regulatory oversight and protect the stability of Arizona’s insurance marketplace. The bill will be heard in House Rules on Monday.
SB 1414 Insurance; Time-Limited Offer; Settlement Demand (Bolick): SB 1414 was introduced and assigned to the House Finance Committee earlier this week. The bill establishes a time-limited offer for settlement demands in insurance claims. The bill outlines the procedures for making settlement demands and specifies the time frame within which insurers must respond (30 days). It mandates that insurers provide clear communication regarding the terms of the settlement offer. Additionally, the legislation includes provisions for the consequences if insurers fail to comply with the stipulated time limits.
0 Comments