AZ Legislative Update – March 20, 2026
Posted by [email protected] on Mar. 23, 2026 / Subscribe 0
Today marks the 68th day of the Arizona 57th Legislature, 2nd Regular Session, and the pace at the Capitol continues to accelerate. Next week is the final week for most bills to be heard in committee, with an additional week reserved for House and Senate Appropriations. Any bill not heard by the applicable deadline will be considered dead, though measures can still be revived through floor amendments to germane legislation. As committees wrap up, legislative activity will increasingly shift to floor action and, ultimately, conference committees.
With the committee deadline approaching, attention is also beginning to turn more fully to the state budget. Earlier today, Governor Hobbs announced that she has called off budget negotiations with Republican legislative leadership, accusing them of refusing to engage in good-faith discussions regarding education funding and the continuation of Proposition 123. This development further complicates an already slow-moving process and underscores the significant divide between the executive and legislative branches on key spending priorities. As a result, the FY 2027 budget timeline remains uncertain, and it is increasingly likely that negotiations will extend into late spring or early summer before a final agreement is reached.
Separately, the Maricopa County Board of Supervisors on Tuesday selected Cody Reim to fill the vacant House seat in Legislative District 3, replacing former Representative Joseph Chaplik (R-Scottsdale). Reim was chosen over former State Representative Michelle Ugenti-Rita and current LD 3 House candidate George Khalaf. Reim has lived in Arizona for the last 13 years. He has worked on several campaigns and legislative initiatives. He is considered well connected within Arizona Republican circles.
Below, please find a few bills we would like to highlight.
Health Insurance
HB 2308 Dental Insurers; Dental Practice; Prohibition (Weninger): HB 2083 will be heard in the Senate Regulatory Affairs & Government Efficiency Committee on Wednesday. The bill expands the list of equipment and supplies that health benefit plans must cover for diabetes; however, it was favorably amended to narrow the language of what is covered.
SB 1347 Health Insurance; Fertility Preservation; Coverage (Werner): SB 1347 passed out of the House Health & Human Services Committee on Monday, 12-0. The bill, effective January 1, 2028, requires a health insurer to provide coverage for standard fertility preservation services to an insured who is within reproductive age, who is diagnosed with cancer and whose medically necessary treatment is likely to cause iatrogenic infertility. It prescribes procedures for a religious employer to request an exemption from the coverage requirement.
S/E: SB 1372 Insurance; Reimbursement Rates; Nurse Anesthetists (Shope): A strike-everything amendment to SB 1372 will be offered in House Health & Human Services on Monday that will attempt to resurrect HB 2447 Insurance; Reimbursement Rates; Nurse Anesthetists (Lopez). The striker 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.
SB 1494 Patient Steering (Werner): SB 1494 will be heard in the House Health & Human Services Committee on Monday. The bill prohibits health care providers, health care institutions and drug manufacturers from paying enrollee health insurance premiums or steering enrollees to change plans based on health status and establishes related criminal penalties.
SB 1497 School Insurance (Werner): SB 1497 will be heard in the House Education Committee on Tuesday. The bill 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 1628 Claims Denial; Prior Authorization; Reporting (Angius): SB 1628 will be heard in the House Health & Human Services Committee on Monday. 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 will be heard in the Senate Finance Committee on Monday. The bill modernizes the funding structure for the Arizona Department of Insurance and Financial Institutions Financial Surveillance Fund. It increases the maximum allowable assessment amount for each range of total admitted assets. There will be a committee amendment that removes the provision adjusting for inflation.
HB 4020 Insurance; Fraud Unit; Assessment; Increase (Livingston): HB 4020 will be heard in the Senate Finance Committee on Monday. The bill increases the maximum assessment amount the Director of the Department of Insurance and Financial Institutions can assess each licensed insurer from $1,050 to $1,350.
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