AZ Legislative Update – February 20, 2026
Posted by [email protected] on Feb. 20, 2026 / Subscribe 0
Friday marked the 40th day of the Arizona 57th Legislature, 2nd Regular Session, and the deadline for bills to be considered in their chamber of origin has officially passed.
With the crossover deadline behind us, any bill that has not been heard in its chamber of origin (aside from measures pending in the two Appropriations Committees next week) is now considered dead. That said, a “dead” bill does not mean the issue itself is off the table. No issue is truly resolved until the Legislature adjourns sine die.
In separate news, Representative Joseph Chaplik (R-Scottsdale) announced that he will be resigning from the Arizona House of Representatives to focus on his campaign for the U.S. House of Representatives in Arizona’s 1st Congressional District. His resignation is expected to take effect sometime next week.
Chaplik has served in the Arizona House since January 2021, after first being elected in 2020 and subsequently reelected following redistricting. During his tenure, he has held several key leadership roles, including chairman of the Regulatory Oversight Committee, as well as previously serving as chairman of the House Ethics Committee and vice chairman of the Appropriations and Commerce committees.
Pursuant to Arizona law, the Maricopa County Board of Supervisors will appoint his successor. The Board will select from a list of three nominees submitted by the precinct committeemen from his legislative district.
Committees, other than Appropriations and Rules, will not meet this coming week as legislation transitions to the opposite chamber for consideration.
As we move forward, we anticipate an increase in strike-everything amendments, which are often used to revive stalled proposals or introduce new policy language that has not previously been considered this session.
The next major deadline is March 27th, the final day for committees to hear bills from the opposite chamber. Any bill that does not clear the committee process by that date will no longer be viable in its current form.
Below are several highlighted bills for your review.
Health Insurance
S/E: HB 2083 Health Coverage; Diabetes; Monitor; Supplies (Bliss): HB 2083 passed out of the House Health & Human Services Committee on Monday afternoon, 11-1. This problematic striker expands the list of equipment and supplies that health benefit plans must cover for diabetes.
S/E: HB 2182 Reporting; Prior Authorization; Claims Denials (Willoughby): HB 2182 passed out of the House Health & Human Services Committee on Monday afternoon, 12-0. The proposed striker establishes reporting requirements for DIFI relating to claim denial practices and prior authorization practices. The striker requires DIFI, by July 1, 2032, to hold a stakeholder meeting to evaluate the usefulness of the collected data. This is the same language as SB 1628 Claims Denial; Prior Authorization; Report (Angius).
HB 2196 Pharmacists; Pharmacies; Reimbursement Costs; Appeals (Bliss): HB 2196 passed out of the House Health & Human Services Committee on Monday afternoon, 11-1; however, the bill is likely dead since it will not be heard in the House Appropriations Committee. HB 2196 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 2211 Independent Dispute Resolution; Patients (Livingston): A strike-everything amendment to HB 2211 will be heard in the House Appropriations Committee on Monday. The proposed striker amendment strengthens state enforcement mechanisms related to the federal No Surprises Act by establishing clearer payment and billing standards in independent dispute resolution (IDR) cases. It requires health insurers to remit all amounts due to nonparticipating providers within the 30-day timeframe specified under federal law following an IDR determination. The amendment also expands definitions of “unprofessional conduct” across multiple licensing statutes to specify that submitting an offer in the IDR process that exceeds 300% of the Medicare rate or 300% of the qualified payment amount constitutes a clearly excessive or inappropriate fee. Additionally, it permits exceptions where a patient has provided informed consent to waive No Surprises Act protections, provided the required federal consent form is submitted with the claim.
S/E: HB 2250 Prior Authorization; Timelines; Disclosure Access (Bliss): HB 2250 passed out of the House Health & Human Services Committee on Monday, 12-0. 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 2433 Medicare Supplement Insurance; ALS; ESRD (Bliss): HB passed out of the House Health & Human Services Committee on Monday, 12-0. 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 Rules Committee on Monday, 7-0 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 2693 Insurance; Bona Fide Associations; Qualifications (Livingston): HB 2693 passed out of the House Committee of the Whole on Thursday. The bill establishes qualifications for bona fide associations in Arizona regarding insurance. The bill outlines the criteria that these associations must meet to provide insurance coverage to their members. It specifies the types of insurance that can be offered and the regulatory framework governing these associations. Additionally, the bill includes provisions for compliance with state insurance laws and regulations.
SB 1165 Insurance; Cost Sharing; Breast Exams (Angius): SB 1165 passed out of the Senate Finance Committee on Monday, 5-1. 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 passed out of the Senate Finance Committee on Monday, 4-2. 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 passed out of the Senate Finance Committee on Monday, 4-1. 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.
S/E: SB 1494 Patient Steering (Werner): The strike-everything amendment to SB 1494 passed out of the Senate Health & Human Services Committee on Wednesday, 4-3. 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 passed out of Senate Education on Wednesday, 5-0. The striker amendment adopted by the committee looks 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 passed out of the Senate Health & Human Services Committee on Wednesday, 5-2. 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 passed out of the Senate Health & Human Services Committee on Wednesday, 7-0. 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 passed out of the House Commerce Committee on Tuesday, 10-0. 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.
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