Bill > SB1611

This bill, effective October 1, 2027, mandates that the Arizona Health Care Cost Containment System (AHCCCS) contract with a qualified entity to act as an administrative services organization (ASO) for members enrolled in the American Indian health program, excluding services already provided through tribal health programs. The ASO will manage functions like program integrity, care management, provider support, quality improvement, data analytics, and claims payment. AHCCCS will retain ultimate responsibility for the program, including fee-for-service rate setting, and cannot eliminate the fee-for-service option for eligible American Indian and Alaska Native members. The bill requires the ASO to have proven experience with American Indian and Alaska Native populations and to coordinate with tribal health programs. Before issuing a contract, AHCCCS must consult with tribes and urban Indian organizations and submit proposed procurement details to legislative committees, considering public and tribal feedback. Federally recognized tribes can appoint nonvoting observers to the ASO selection committee. The ASO must establish an office of tribal relations and consult quarterly with tribes and other stakeholders to evaluate its performance. The bill also defines key terms like "administrative services organization" and "tribal health program" and emphasizes that this arrangement will not transfer contracting authority from AHCCCS and will preserve existing protections for Indians and Indian health care providers, including the right to elect fee-for-service coverage and voluntary enrollment/disenrollment in managed care.