SB 1247 Summary

• Establishes a new hospital assessment on inpatient and outpatient services, effective October 1, 2020, to be collected by the Arizona Health Care Cost Containment System (AHCCCS) administration in addition to existing assessments.

• Creates the Health Care Investment Fund to receive assessment revenues and appropriates monies for directed payments to hospitals, provider rate increases (up to $70.5 million or 20% of collected assessment), and administrative costs (up to 1% of collected assessment).

• Prohibits hospitals from passing assessment costs to patients or third-party payors and requires hospitals to submit attestations confirming compliance with this requirement.

• Allows AHCCCS director to establish exemptions or modifications to the assessment based on hospital size, specialty services, and geographic location, subject to Centers for Medicare and Medicaid Services approval.

• Authorizes conditional repeal of the assessment if CMS determines it is no longer eligible for federal financial participation, with remaining fund monies refunded to hospitals proportionally.