AZ Legislative Update – February 27, 2026
Posted by [email protected] on Feb. 27, 2026 / Subscribe 0
Today marks the 47th day of the Arizona 57th Legislature, 2nd Regular Session, bringing us to roughly the halfway point of the 2026 session.
Although legislative sessions are scheduled to run approximately 100 days, the actual length is typically driven by budget negotiations, which can be unpredictable and complex. At this stage, all indications suggest that session will extend significantly beyond the anticipated timeline, as the Republican-led Legislature and Democratic Governor, Katie Hobbs, have shown limited signs of agreement on key issues. That said, with early voting set to begin June 24th and the primary election scheduled for July 21st, both sides have an incentive to adjourn sooner rather than later.
This past week, legislative committees, aside from Appropriations and Rules, did not meet, as members focused primarily on floor activity and advancing bills out of their respective chambers. Notably, the Arizona House pulled an all-nighter on Wednesday, working until 5:30 a.m. Thursday morning to move a significant volume of bills to the Senate ahead of internal deadlines. The late-night push was driven in part by the unusually high number of measures introduced this session and the looming crossover timelines. Committee agendas in the coming week are expected to remain relatively light as legislation continues crossing over and being assigned in the opposite chamber. However, with the March 27th deadline to hear bills in the opposite chamber, activity is expected to accelerate significantly in the weeks ahead.
Below, please find several highlighted bills.
We continue to engage with members and staff on your top legislative priorities. As always, please do not hesitate to reach out with any questions or concerns.
Health Insurance
S/E: HB 2211 Independent Dispute Resolution; Patients (Livingston): The strike-everything amendment to HB 2211 was heard in the House Appropriations Committee on Monday for just informational purposes. The language in the proposed striker amendment looks to strengthen 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.
HB 2447 Insurance; Reimbursement Rates; Nurse Anesthetist (Lopez): HB 2447 passed out of the House on Wednesday, 32-22. The bill prohibits health care insurers that issue, amend or renew a contract or policy from imposing a reimbursement rate for Certified Registered Nurse Anesthetists services that differ from the reimbursement rates for licensed physicians.
HB 2693 Insurance; Bona Fide Associations; Qualifications (Livingston): HB 2693 passed out of the House on Monday, 40-17. 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 1628 Claims Denial; Prior Authorization; Reporting (Angius): SB 1628 passed out of the Senate on Thursday, 28-0. The bill adds new statutory reporting requirements for health plans related to claims denials and prior authorization practices. Beginning July 1, 2027, and annually thereafter, plans must submit aggregated data to the Department detailing total claims and prior authorization requests, partial and full denials, appeals by level of review, reversal rates, top denied inpatient and outpatient services by category, and the top five reasons for denials. The bill newly requires disclosure of the total number of claims that were completely downcoded, defined as the unilateral alteration of a submitted service code to a lower-paying code. It also requires reporting on average and median turnaround times for standard and expedited prior authorization determinations, mandates that the Department publish plan-specific reports online each year, and directs the Director to adopt rules as necessary to implement these provisions.
Insurance Operations
HB 2091 Financial Surveillance Fund; Insurer Examinations (Livingston): HB 2091 was assigned to the Senate Finance Committee earlier this week. 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.
HB 4020 Insurance; Fraud Unit; Assessment; Increase (Livingston): HB 4020 passed out of the House on Thursday, 42-12. The bill increases the maximum annual amount the Director of the Department of Insurance and Financial Institutions can assess each licensed insurer to up to $1,350.
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