AZ SB1713

Requires AHCCCS to implement an "Arizona hybrid model" for managed care contracting beginning October 1, 2027, replacing traditional competitive sealed proposals with a performance-based procurement framework

Establishes a four-year performance and operations phase where contractors are evaluated using a standardized performance rubric with objective, quantitative measures covering claims processing, network adequacy, quality of care, and member experience

Prohibits any contractor from exceeding 20% of total enrollment in any program through auto-assignment, while allowing the administration to temporarily direct auto-assigned enrollment to new contractors to help them achieve minimum operational viability

Requires incumbent contractors (those serving programs as of 2026) to be presumed eligible for participation, while nonincumbent contractors must demonstrate financial solvency and at least five years of operational experience

Limits appeals to the Office of Administrative Hearings to verifying whether AHCCCS correctly applied its published performance rubric, with no further administrative appeal available after that determination