SB 1086 Arizona Senate · 57th Legislature - Second Regular Session

AHCCCS; noncontracting providers; reimbursement

This bill requires AHCCCS insurance companies to reimburse non-network providers for laboratory services when a member is referred by a network provider. It also prohibits prior authorization for diagnostic services and bans insurance companies from retaliating against providers who refer members to non-network options. The law aims to increase competition within Arizona's Medicaid program by preventing insurers from blocking patient access to outside providers. It directly affects AHCCCS members, contracted healthcare providers, and non-network providers offering lab and diagnostic services.
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2026
Committee Review
Senate Passage
Mar 2026
House Passage
Governor
Introduced Jan 5, 2026 Last action Mar 19, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version Senate Engrossed Version (03/16/2026) · 4 edits · Mar 16, 2026
MODERATE
The bill was reorganized and its language was clarified to strengthen protections for noncontracting providers. The most significant change is the addition of a 'notwithstanding' clause, which ensures that the reimbursement requirement for laboratory services cannot be overridden by other laws. The bill also explicitly requires that reimbursement rates for referred members must be at least equal to the rates paid to contracted providers, removing ambiguity about whether equal or lower rates were acceptable.
Scope change
The scope of applicability was expanded by adding a specific exception for the contractor's own contracted providers, clarifying that the referral and reimbursement rules apply when a member is referred by a contracted provider of the same contractor.
REQUIREMENT

Added a 'notwithstanding any other law' clause to ensure the reimbursement mandate cannot be superseded by conflicting statutes.

Clarified that reimbursement rates for referred members must not be less than the rates paid to contracted providers.

Added an explicit exception stating that the referral and reimbursement rules apply when a member is referred by a contracted provider of the same contractor.

TECHNICAL

Changed the capitalization of key terms from all-caps to sentence case for standard legal formatting.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
10
Key actions
3
Committee
0
Amendments
2
Mar 16, 2026
Upper · Passed
PASSED
upper
Mar 10, 2026
Upper · Passed
DPA
upper
Feb 11, 2026
Upper · Passed
DPA
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Mark Finchem
Mark Finchem
RRepublican
AZ
1