AZ SB1236

Requires AHCCCS to establish data matching agreements with state agencies to verify member eligibility, including monthly reviews of lottery/gambling winnings over $3,000, death records, and out-of-state benefit card transactions, plus quarterly checks on employment status and tax records.

Prohibits AHCCCS from accepting self-attestation of income, residency, age, household composition, or health insurance coverage without independent verification before enrollment.

Directs AHCCCS to request a federal Section 1115 waiver to eliminate mandatory hospital presumptive eligibility and restrict presumptive eligibility to only children and pregnant women.

Establishes a three-strike enforcement system for hospitals making presumptive eligibility determinations: first violation triggers a warning, second requires mandatory staff training, and third permanently disqualifies the hospital from making such determinations.

Takes effect December 31, 2026, with AHCCCS required to submit necessary federal waiver requests by April 1, 2027.