Each year by December 1, the Arizona Health Care Cost Containment System (AHCCCS) must report to state leaders what percentage of money its nongovernment prepaid capitated contractors spent on direct payments to providers versus administrative costs, combined across all of those contractors.
Official title: prepaid capitated contractors; cost reports
- September 12, 2026
What changes
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NowBy December 1 each year, AHCCCS must report to the Joint Legislative Budget Committee, the governor, the Senate president, the House speaker and members of both chambers' health and human services committees (or their successor committees).
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NowThe report must show, for the previous contract year, the percentage of money spent on direct payments to providers for services.
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NowThe report must also show the percentage spent on administrative costs, broken into 5 categories: health care quality improvement, program integrity (including fraud, waste and abuse prevention), taxes, licenses and regulatory fees, community reinvestment, and all other administrative activities.
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NowThe figures must be given in aggregate (combined) for all nongovernment entities that hold a prepaid capitated contract with AHCCCS, not plan by plan.
Who it affects
- Arizona Health Care Cost Containment System (AHCCCS)
- Nongovernment entities with prepaid capitated contracts with AHCCCS
- Joint Legislative Budget Committee, the governor and legislative leaders and health committee members who receive the report
What you need to do
Nothing.
What the law doesn't answer
- Which December 1 the first report is due
- Whether the report will be made available to the public
- How 'administrative costs' or each category is defined or measured
- Whether contractors must submit new data to AHCCCS to produce the report
- Any penalty or consequence if spending percentages are high or low
- Whether government entities with such contracts are reported separately
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.