AZ SB1086

Requires the department to contract with an independent consulting firm for annual studies of Title XIX reimbursement rates for the developmentally disabled program under the Arizona long-term care system.

Mandates complete reimbursement rate studies be conducted at least once every five years, examining costs for programmatic, administrative, and indirect services in both rural and urban areas.

Limits capitation rate adjustments to utilization of existing services and inflation unless policy changes have been approved by the legislature or required by federal law or court mandate.

Requires the administration to conduct similar annual studies of Title XIX reimbursement rates for the elderly and physically disabled program of the Arizona long-term care system, with complete studies at least every five years.

Mandates that annual study reports be provided to the joint legislative budget committee by October 1 each year, and requires the administration to report within 30 days if study results are not fully incorporated into capitation rates.