The ARIZOTA Legislative and Government Affairs Committee has been very busy during 2011, and not just because of the severe budget problems in Arizona. In addition to the 2011 session of the Legislature, where the main focus was the budget (particularly AHCCCS and its budget), the Committee has been working on significantly more projects than usual, including: the possible new RFP from AzEIP and DES on Pediatric Developmental Disability (which was started in 2010); the Industrial Commission Fee Schedule (which ARIZOTA is working on for 2012); and the proposed statutory changes from the Arizona Board of Occupational Therapy Examiners (which includes the supervision issues).
The following is an update from the ArizOTA lobbyist, Scot Butler III, on the Arizona state budget:
On Friday, April 1, the House and Senate passed the proposed FY (fiscal year) 2011-2012 budget (including resolution of deficits for the current fiscal year) and sent it to Governor Brewer. She is likely to sign it in the next 2-3 days.
The Senate version of the budget, passed 2 weeks ago, adopted Gov. Brewer's initial AHCCCS proposal, to cut 250,000 people (primarily childless adults—the so called Prop. 204 population) from the rolls permanently.
The budget passed on April 1st results in the same amount of savings-about $500 million-but uses Gov. Brewer's second proposal instead. This proposal implements a freeze on new enrollment of the Prop. 204 population (and a few other categories) as of July. So individuals in that group who go off AHCCCS (there are thousands each month) will not be able to re-enroll. The plan also requires co-pays and missed visit charges, and implements another 5% provider reimbursement cut on October 1 (there was already a 5% cut that took effect March 31, 2011). In addition, the legislature gave Governor Brewer broad authority to get federal approval for various changes that are not spelled out, so long as the total FY 2011-12 savings is still $500 million.
The overall effect should be less of an instant shock to both AHCCCS patients and providers, but as the freeze takes effect, there will be a significant reduction in
AHCCCS services. In any event, it is clear that there will be a lawsuit filed alleging a violation of Prop. 204, which is voter protected. There is also no assurance of federal approval on the various waivers that will be sought.
So, there is a substantial likelihood that this part of the budget may have to be redone in July or August. At that point, the Hospital Association proposal and other options may be considered.
On Friday, April 1, the House and Senate passed the proposed FY (fiscal year) 2011-2012 budget (including resolution of deficits for the current fiscal year) and sent it to Governor Brewer. She is likely to sign it in the next 2-3 days.
The Senate version of the budget, passed 2 weeks ago, adopted Gov. Brewer's initial AHCCCS proposal, to cut 250,000 people (primarily childless adults—the so called Prop. 204 population) from the rolls permanently.
The budget passed on April 1st results in the same amount of savings-about $500 million-but uses Gov. Brewer's second proposal instead. This proposal implements a freeze on new enrollment of the Prop. 204 population (and a few other categories) as of July. So individuals in that group who go off AHCCCS (there are thousands each month) will not be able to re-enroll. The plan also requires co-pays and missed visit charges, and implements another 5% provider reimbursement cut on October 1 (there was already a 5% cut that took effect March 31, 2011). In addition, the legislature gave Governor Brewer broad authority to get federal approval for various changes that are not spelled out, so long as the total FY 2011-12 savings is still $500 million.
The overall effect should be less of an instant shock to both AHCCCS patients and providers, but as the freeze takes effect, there will be a significant reduction in
AHCCCS services. In any event, it is clear that there will be a lawsuit filed alleging a violation of Prop. 204, which is voter protected. There is also no assurance of federal approval on the various waivers that will be sought.
So, there is a substantial likelihood that this part of the budget may have to be redone in July or August. At that point, the Hospital Association proposal and other options may be considered.