The state health department must license a new kind of facility, called an enhanced residential treatment facility, for people with serious mental illness, and AHCCCS (Arizona's Medicaid program) must seek federal approval for a 3-year pilot program serving up to 60 adults statewide.
Official title: enhanced residential treatment; SMI
- September 12, 2026
- By July 1, 2027: Deadline for AHCCCS to request federal approval of the pilot
- Within 1 year after federal approval: Deadline for AHCCCS to begin enrolling eligible people, subject to available money
- 3 years after federal approval: Pilot program ends and its law is repealed
What changes
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NowA new license type, the "enhanced residential treatment facility," covers residential care for people who are seriously mentally ill, including behavioral health, structured support and health-related services. The Department of Health Services must license these facilities and adopt rules on licensing, staffing and building standards.
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NowAHCCCS must ask federal Medicaid officials to approve a 3-year pilot program by July 1, 2027. It must start enrolling people within 1 year after approval, depending on available money. The pilot is capped at 60 members statewide. AHCCCS may raise the cap if its data shows reduced use of high-cost services or cost avoidance, subject to available money and review by the Joint Legislative Budget Committee.
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NowTo qualify for the pilot, a person must be 18 or older, an Arizona resident and determined to be seriously mentally ill. They must also meet a new level-of-care standard based on behavioral, functional and safety needs, not physical disability. Their income must be no more than 300% of the federal SSI benefit rate, and they must meet the long-term care resource limits. People with higher income may set up a qualified trust to qualify.
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NowMembers get their usual SMI health plan services plus enhanced residential treatment services, such as continuous supervision, structured support and medication monitoring. Each member must have a written service plan. Members cannot also be enrolled in the Arizona Long Term Care System. The state's estate recovery and lien rules apply to members, which means the state may seek repayment from a member's estate or property.
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NowPeople apply through their AHCCCS health plan, or through AHCCCS if they are not yet enrolled with a plan. Waitlists may total no more than 100 people, and an interest list is used after that. When there are more eligible people than slots, slots go to those with the highest needs, using factors such as court-ordered treatment, recent release from jail or the state hospital, and homelessness. Applicants and members may file grievances and appeals.
Who it affects
- Adults with serious mental illness who receive or qualify for AHCCCS
- Families, caregivers and guardians of adults with serious mental illness
- Residential behavioral health providers
- AHCCCS health plans (contractors)
- Arizona Department of Health Services
- AHCCCS administration
What you need to do
Nothing required. Once enrollment begins, adults who want to join the pilot apply through their AHCCCS health plan, or through AHCCCS if they do not have one.
What the law doesn't answer
- How much money is appropriated for the pilot
- When the Department of Health Services must finish rules for the new facility license
- The exact level-of-care criteria AHCCCS will adopt
- The reimbursement rates providers will be paid
- Where enhanced residential treatment facilities will be located or how many there will be
- What happens to members when the pilot ends
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.