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Arizona Legislature· SB1399Signed by Governor (Chapter 225)

prepaid capitated contractors; cost reports, the official text

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Senate Engrossed

prepaid capitated
contractors; cost reports

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1399

AN
ACT

AMending title 36, chapter 29, article 1,
Arizona Revised Statutes, by adding section 36-2904.01; relating to the
Arizona health care cost containment system.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Title 36, chapter 29, article 1,
Arizona Revised Statutes, is amended by adding section 36-2904.01, to read:

START_STATUTE36-2904.01. Prepaid capitated contracts; expenditures; annual report

On or before December 1
of each year, the administration shall annually report to the joint legislative
budget committee, the governor, the president of the senate, the speaker of the
House of representatives and the members of the senate and house of representatives
health and human services committees, or their successor committees, in aggregate for all nongovernment entities that have a prepaid
capitated contract with the administration, The
percentage of monies in the previous contract year:

1. that was spent on direct payments to providers for services.

2. that was spent on administrative
costs for each of the following:

(a) Health care
quality improvement administrative activities.

(b) Program
integrity, including fraud, waste and abuse prevention expenses.

(c) Taxes,
licenses and regulatory fees.

(d) Community
reinvestment.

(e) All other
administrative activities.END_STATUTE
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