Bill Text: AZ SB1455 | 2017 | Fifty-third Legislature 1st Regular | Introduced


Bill Title: AHCCCS; pharmacy services; contracts

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-02-01 - Senate read second time [SB1455 Detail]

Download: Arizona-2017-SB1455-Introduced.html

 

 

 

REFERENCE TITLE: AHCCCS; pharmacy services; contracts

 

 

 

State of Arizona

Senate

Fifty-third Legislature

First Regular Session

2017

 

 

SB 1455

 

Introduced by

Senator Bradley

 

 

AN ACT

 

Amending sections 36‑2906 and 36‑3412, Arizona Revised Statutes; relating to the Arizona health care cost containment system administration.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1.  Section 36-2906, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2906.  Qualified plan health services contracts; proposals; rules; administration

A.  The administration shall:

1.  Supervise the administrator.

2.  Review the proposals.

3.  Award contracts.

4.  Contract separately for pharmacy services from any other health and medical service.

B.  The director shall prepare and issue a request for proposal proposals, including a proposed contract format, in each of the counties of this state, at least once every five years, to qualified group disability insurers, hospital and medical service corporations, health care services organizations and any other qualified public or private persons, including county‑owned and operated health care facilities.  The contracts shall specify the administrative requirements, the delivery of medically necessary services and the subcontracting requirements.

C.  The director shall adopt rules regarding the request for proposal proposals process that provide:

1.  For a definition of proposals in the following categories subject to the following conditions:

(a)  Inpatient hospital services.

(b)  Outpatient services, including emergency dental care, and early and periodic health screening and diagnostic services for children.

(c)  Pharmacy services.

(d)  Laboratory, x‑ray and related diagnostic medical services and appliances.

2.  Allowance for the adjustment of such categories by expansion, deletion, segregation or combination in order to secure the most financially advantageous proposals for the system.

3.  An allowance for limitations on the number of high risk persons that must be included in any proposal.

4.  For analysis of the proposals for each geographic service area as defined by the director to ensure the provision of health and medical services that are required to be provided throughout the geographic service area pursuant to section 36‑2907.

5.  For the submittal of proposals by a group disability insurer, a hospital and medical service corporation, a health care services organization or any other qualified public or private person intending to submit a proposal pursuant to this section.  Each qualified proposal shall be entered with separate categories for the distinct groups of persons to be covered by the proposed contracts, as set forth in the request for proposal.

6.  For the procurement of reinsurance for expenses incurred by any contractor or member or the system in providing services in excess of amounts specified by the director in any contract year.  The director shall adopt rules to provide that the administrator may specify guidelines on a case by case case‑by‑case basis for the types of care and services that may be provided to a person whose care is covered by reinsurance.  The rules shall provide that if a contractor does not follow specified guidelines for care or services and if the care or services could be provided pursuant to the guidelines at a lower cost, the contractor is entitled to reimbursement as if the care or services specified in the guidelines had been provided.

7.  For the awarding of contracts to contractors with qualified proposals determined to be the most advantageous to the state for each of the counties in this state.  A contract may be awarded that provides services only to persons defined as eligible pursuant to section 36‑2901, paragraph 6, subdivision (b), (c), (d) or (e).  The director may provide by rule a second round competitive proposal procedure for the director to request voluntary price reduction of proposals from only those that have been tentatively selected for award, before the final award or rejection of proposals.

8.  For the requirement that any proposal in a geographic service area provide for the full range of system covered services.

9.  For the option of the administration to waive the requirement in any request for proposal or in any contract awarded pursuant to a request for proposal for a subcontract with a hospital for good cause in a county or area, including but not limited to situations when such the hospital is the only hospital in the health service area.  In any situation where the subcontract requirement is waived, no hospital may refuse to treat members of the system admitted by primary care physicians or primary care practitioners with hospital privileges in that hospital.  In the absence of a subcontract, the reimbursement level shall be at the levels specified in section 36‑2904, subsection H or I.

D.  Reinsurance may be obtained against expenses in excess of a specified amount on behalf of any individual for system covered emergency or inpatient services either through the purchase of a reinsurance policy or through a system self‑insurance program as determined by the director. Reinsurance, subject to the approval of the director, may be obtained against expenses in excess of a specified amount on behalf of any individual for outpatient services either through the purchase of a reinsurance policy or through a system self‑insurance program as determined by the director.

E.  Notwithstanding the other provisions of this section, the administration may procure, provide or coordinate system covered services by interagency agreement with authorized agencies of this state or with a federal agency for distinct groups of eligible persons, including persons eligible for children's rehabilitative services through the department of economic security and persons eligible for comprehensive medical and dental program services through the department of child safety.

F.  Contracts shall be awarded as otherwise provided by law, except that in no event may a contract be awarded to any respondent that will cause the system to lose any federal monies to which it is otherwise entitled.

G.  After contracts are awarded pursuant to this section, the director may negotiate with any successful proposal respondent for the expansion or contraction of services or service areas if there are unnecessary gaps or duplications in services or service areas. END_STATUTE

Sec. 2.  Section 36-3412, Arizona Revised Statutes, is amended to read:

START_STATUTE36-3412.  Contracts; regional behavioral health authorities

A.  The director shall prepare and issue a request for proposals for behavioral health services consistent with sections 36‑2906 and 36‑2906.01.

B.  Consistent with section 36‑2903, subsection M, the administration's contracts with regional behavioral health authorities shall include terms as necessary in the judgment of the director:

1.  To ensure adequate performance and compliance with all applicable federal laws by the regional behavioral health authorities.

2.  For the maintenance of deposits, performance bonds, financial reserves or other financial security.

3.  For the withholding or forfeiture of payments to be made to a regional behavioral health authority by the administration due to the authority's failure to comply with a provision of the authority's contract with the administration or with adopted rules.

4.  Authorizing the administration to operate a regional behavioral health authority directly.

C.  If there is an insufficient number of qualified bids for prepaid capitated behavioral health services within a geographic service area described in a request for proposals, the director may employ any of the options authorized by section 36‑2904, subsection A.

D.  During any period in which services are needed and no contract exists, the director may employ any of the options authorized by section 36‑2904, subsection B.

E.  If there is an insufficient number of, or an inadequate member capacity in, contracts awarded to contractors, the director, in order to deliver covered services to members enrolled or expected to be enrolled in the system within a county, may negotiate and award without a bid a contract pursuant to section 36‑2904, subsection J.

F.  To the extent that services are furnished pursuant to this chapter, and unless otherwise required by this chapter, a regional behavioral health authority is not subject to title 20.

G.  Regional behavioral health authorities are subject to section 36‑2905.

H.  The administration shall contract separately for pharmacy services from any other behavioral health services. END_STATUTE

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