AZ Legislative Update – February 13, 2026
Posted by [email protected] on Feb. 16, 2026 / Subscribe 0
Today marks the 33rd day of the Arizona 57th Legislature, 2nd Regular Session. As expected, activity at the Capitol accelerated this week as members faced the deadline to introduce new bills without special permission from the House Speaker or Senate President. To date, 1,967 bills have been introduced (243 more than last session) along with 150 resolutions (12 more than last year).
Committee agendas were lengthy throughout the week, and both chambers spent significant time on the floor debating and voting on legislation. Lawmakers now head into the final week for bills to be heard in their chamber of origin. Any bill that does not clear its assigned policy committee by the end of this week (with appropriations committees receiving an additional week) will effectively be dead in its current form. That said, as is often the case at the Capitol, strike-everything amendments and late-session negotiations mean no issue is ever truly finished until sine die.
In a surprise move, Karrin Taylor Robson announced Thursday that she is dropping out of the race for Arizona Governor, reshaping the developing 2026 gubernatorial landscape and narrowing the Republican primary field. We will continue to monitor how this decision impacts both the campaign environment and legislative dynamics moving forward.
On the fiscal front, the Republican-controlled Legislature sent Governor Hobbs a second federal tax conformity bill this week. As anticipated, the Governor quickly vetoed the measure, continuing the ongoing standoff between the Executive and Legislative branches over conformity and related budget impacts. We will continue to monitor developments closely, as the issue will likely resurface in budget negotiations or in a revised proposal.
Below are several bills we would like to highlight, including measures scheduled for committee hearings this week.
Health Insurance
HB 2083 Health Coverage; Diabetes; Monitor; Supplies (Bliss): HB 2083 will be heard in the House Health & Human Services Committee on Monday afternoon. The bill requires health insurers to cover medically necessary diabetes-related equipment and supplies prescribed by healthcare providers. Covered items include blood glucose monitors, insulin preparations, syringes, and continuous glucose monitors for individuals diagnosed with Type 1 diabetes. The bill aligns coverage requirements with Medicare, with some provisions effective six months after Medicare mandates similar coverage. Health plans may impose deductibles, coinsurance, or other cost-sharing measures for these benefits. The legislation takes effect on January 1, 2026.
HB 2196 Pharmacists; Pharmacies; Reimbursement Costs; Appeals (Bliss): HB 2196 will be heard on Monday in the House Health & Human Services Committee. The bill prohibits pharmacy benefit managers (PBMs) from reimbursing nonaffiliated pharmacists or pharmacies for prescription drugs or devices at amounts less than their actual costs. PBMs must pay a professional dispensing fee separately, based on the state's fee-for-service methodology. The bill requires PBMs to include appeal procedures in contracts, allowing pharmacists or pharmacies to challenge reimbursement rates within seven business days. Starting January 1, 2027, PBMs must file these appeal procedures with the state for approval. If a PBM fails to comply, it must adjust reimbursements to actual costs, allow claim reversals, and apply the corrected rates to similarly situated pharmacies.
S/E: HB 2250 Prior Authorization; Habilitative Services (Bliss): HB 2250 will be heard on Monday in the House Health & Human Services Committee. The bill is scheduled to have a strike-everything amendment offered onto it which will amends Arizona’s prior authorization statutes for health care services plans by requiring providers to access and submit uniform prior authorization requests through the plan’s applicable electronic software system or data portal (no faxes). It reduces response timelines by requiring plans to issue determinations for urgent requests within seventy-two hours (instead of five days) and for non-urgent requests within seven calendar days (instead of fourteen days), unless a shorter timeframe is required under federal CMS interoperability rules. The striker also clarifies that emergency after-hours procedures must ensure the timely receipt and processing of prior authorization requests and incorporates CMS interoperability standards into review timelines for additional information submissions. Additionally, the Department of Insurance is required to compile CMS-required prior authorization metric reports for qualified health plans and, by December 31 each year, publish links on its public website to each plan’s reported data from the prior calendar year. The amendments take effect December 31, 2026.
HB 2333 Insurance; Prosthetics; Orthotics; Reporting Requirements (Heap): HB 2333 passed out of the House Health & Human Services Committee on Monday, 10-2. The bill requires Arizona health insurers to provide coverage for prosthetic and orthotic devices that is at least equivalent to Medicare Part B, effective January 1, 2027. Coverage must include purchase, fitting, adjustment, repair, and replacement of devices, as well as necessary materials and habilitative or rehabilitative benefits, with medical necessity determined by a healthcare provider. Insurers must ensure access to at least two in-state providers and facilitate out-of-network referrals if needed, with reimbursement at agreed rates. Cost sharing is allowed but cannot be more restrictive than for other medical services. The bill also establishes annual reporting requirements on claims and payments through 2032 and prohibits discrimination based on disability. HB 2333 is also assigned to House Appropriations.
HB 2433 Medicare Supplement Insurance; ALS; ESRD (Bliss): HB 2433 will be heard in the House Health & Human Services Committee on Monday. This problematic bill requires insurers to offer Medicare supplement insurance policies to individuals under 65 who are enrolled in Medicare due to end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS), with the same benefits and coverage as those offered to individuals 65 and older. The bill prohibits charging higher premium rates to these younger enrollees compared to those 65 and older. It establishes a special enrollment period from December 2, 2025, to June 1, 2027, for eligible individuals to apply for coverage, with an additional six-month window if applications are not initially available.
HB 2447 Insurance; Reimbursement Rates; Nurse Anesthetists (Lopez): HB 2447 passed out of the House Health & Human Services Committee on Monday, 9-3 The bill requires that certified registered nurse anesthetists receive reimbursement rates from insurers and related entities that are not different from those paid to licensed physicians for comparable services. The bill allows these entities to establish variable reimbursement rates based on quality or performance-based measures, as long as the base rates remain equal. The provisions apply to contracts and policies issued, amended, or renewed on or after the effective date of the relevant sections of the bill.
HB 2617 Insurance; Prostate Cancer; Cost Sharing (Blackman): HB 2617 passed out of the House Health & Human Services Committee on Monday, 10-2. The bill prohibits insurers from imposing cost-sharing requirements for diagnostic prostate cancer screenings for high-risk individuals. The bill takes effect on January 1, 2027. High-risk individuals include men aged 55 and older, men carrying the BRCA1 or BRCA2 gene, men with a family history of prostate cancer or related genetic mutations, and military veterans exposed to agent orange. The bill applies to both individual and group disability insurers.
SB 1165 Insurance; Cost Sharing; Breast Exams (Angius): SB 1165 will be heard on Monday in the Senate Finance Committee. The bill prohibits health insurance entities from imposing cost-sharing requirements such as deductibles, coinsurance, or copayments for diagnostic and supplemental breast examinations. This applies to policies issued, amended, delivered, or renewed on or after January 1, 2027. For high deductible health plans, the cost-sharing exemption applies after the deductible is met, except for preventive services, which are exempt regardless of deductible status. The bill defines "diagnostic breast examination" and "supplemental breast examination" according to National Comprehensive Cancer Network Guidelines, specifying the types of imaging and risk factors covered.
SB 1212 Health Insurance; Reimbursement Rates; Vaccines (Shamp): SB 1212 will be heard in the Senate Finance Committee on Monday. The bill prohibits health care insurers from reimbursing health professionals at different rates based on a covered individual's vaccination status, effective January 1, 2027. The bill defines "covered individual" as an insured, enrollee, or subscriber of a health care insurer. It applies to various types of health care insurers, including disability insurers and health care service organizations.
SB 1347 Health Insurance; Fertility Preservation; Coverage (Werner): SB 1347 will be heard in the Senate Finance Committee on Monday. The bill requires health insurers to cover standard fertility preservation services for individuals of reproductive age diagnosed with cancer whose treatment may cause infertility. The bill prohibits insurers from requiring preauthorization for these services, though policies may include standard cost-sharing provisions and benefit limits. Religious employers may request exemptions if the coverage conflicts with their beliefs and must notify prospective subscribers or enrollees if an exemption is granted. Individuals are allowed to purchase supplemental insurance for fertility preservation at their own expense. The provisions take effect on January 1, 2027.
SB 1398 AHCCCS; Redeterminations; Eligibility Verification; Report (Shamp): SB 1398 will be heard in the Senate Health & Human Services Committee on Wednesday. A striker amendment will be offered.
S/E: SB 1494 Patient Steering (Werner): A strike-everything amendment to SB 1494 will be heard in the Senate Health & Human Services Committee on Wednesday. The striker looks to strengthens Arizona law to protect health insurance consumers from improper financial influence and plan steering by health care providers, facilities, and drug manufacturers. It prohibits these entities from paying or subsidizing a patient’s health insurance premiums, except where permitted under federal law, and prevents them from steering individuals to change or terminate coverage based on their health status or treatment needs. The bill clarifies that encouraging plan changes for individuals with known health conditions, when done as a regular business practice, constitutes insurance solicitation and must be conducted only by licensed Arizona insurance producers. It also aligns violations with existing felony penalties to deter fraud and abusive practices. Overall, the legislation aims to protect vulnerable patients, preserve continuity of coverage, and reduce market distortions that can increase premiums for all consumers.
S/E SB 1497 School Insurance (Werner): SB 1497 will be heard in Senate Education on Wednesday. A striker amendment will be offered that will look to strengthen transparency and accountability for large school districts that self-insure employee health benefits by requiring them to periodically test the marketplace and obtain competitive quotes.
SB 1611 American Indian Health Program; Administration (Werner): SB 1611 will be heard in the Senate Health & Human Services Committee on Wednesday. The bill establishes a framework for contracting a qualified entity to serve as the administrative services organization for the American Indian health program in Arizona, starting October 1, 2027. The program will continue to operate as a fee-for-service option for eligible American Indian and Alaska Native members, with the Arizona Department of Administration retaining oversight of rate setting, claims payment, and program integrity. The bill requires a procurement process involving legislative review, public input from tribal governments and Indian health providers, and nonvoting legislative observers during the selection process. It mandates compliance with federal protections for Indian health care providers and members. The legislation is effective immediately as an emergency measure.
SB 1628 Claims Denial; Prior Authorization; Report (Angius): SB 1628 will be heard in the Senate Health & Human Services Committee on Wednesday. The bill requires health care insurers and health care services plans in Arizona to submit annual reports detailing claims denial and prior authorization practices, including the number of requests, denials, appeals, reversals, and top reasons and services involved. These reports must be publicly posted and maintained for at least three years.
Insurance Operations
HB 4020 Insurance; Fraud Unit; Assessment; Increase (Livingston): HB 4020 will be heard in the House Commerce Committee on Tuesday. The increases the annual assessment on insurers from $1,050 to $1,350 to fund the insurance fraud unit. It grants fraud unit investigators law enforcement powers while acting in their official capacity and sets qualifications for these investigators. The bill allows the fraud unit to share confidential information with other regulatory and law enforcement agencies under confidentiality agreements. It also applies retroactively from June 30, 2026, and requires a two-thirds legislative majority for enactment.
SB 1414 Insurance; Time-Limited Offer; Settlement Demand (Bolick): SB 1414 passed out of the Senate Finance Committee on Monday afternoon, 5-2. The bill grants an insurer 30 days to review and respond to third-party settlement demands.
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