SB 1628 Arizona Senate · 57th Legislature - Second Regular Session

claims denial; prior authorization; reporting

SB 1628 requires Arizona health insurance companies to annually report detailed data on claims denials to the state department by July 1, starting in 2027. This includes the total number of denied claims, top denied services (like medical procedures or mental health care), and reasons for denials. The state department must then compile this data into a public report by October 31, making it accessible online for at least three years. The bill aims to increase transparency around insurance practices affecting healthcare providers and patients, without changing how insurers process claims directly.
Bill status passed 3 of 5 stages cleared
Introduction
Feb 2026
Committee Review
Feb 2026
Senate Passage
Feb 2026
House Passage
Governor
Introduced Feb 3, 2026 Last action Mar 23, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version Senate Engrossed Version (02/26/2026) · 8 edits · Feb 26, 2026
MODERATE
The bill was expanded from a simple reporting requirement to include new definitions, a stakeholder review mechanism, and retroactive application of payment rules. It now requires detailed reporting on both claims denials and prior authorizations, including specific metrics on downcoding and appeal levels. The scope of applicability was broadened to include health care services plans and added protections for providers regarding claim adjustments and location changes.
Scope change
The bill's scope expanded from general health care insurers to explicitly include 'health care services plans.' Additionally, new provisions were added regarding the handling of claims at changed provider locations and the collection of monies for services not covered by insurance.
DEFINITION

Added a specific definition for 'downcode' to clarify that it refers to unilateral alterations of service codes resulting in lower payments.

REQUIREMENT

Expanded reporting requirements to include data on partial vs. complete denials, downcoding incidents, and specific appeal levels for both claims and prior authorizations.

Added new reporting metrics for prior authorization practices, including average and median processing times for standard and expedited requests.

Created a new requirement for a stakeholders meeting in 2032 to evaluate the quality and usefulness of the data collected under the new reporting sections.

Added a new subsection requiring insurers to accept claims sent to original addresses for 90 days after a location change and to notify providers of such changes.

ADDED

Added a new provision allowing providers to collect monies for services not covered by insurance or denied due to frequency limits, limited to the provider's fee schedule.

TIMELINE

Changed the retroactive effective date for payment rules from June 30, 2026, to August 1, 2026, and added a new reporting deadline of August 1 for grievance summaries.

ENFORCEMENT

Added a provision stating that claim adjustments or denials cannot be made more than one year after the original payment or denial, with exceptions for fraud.

Floor votes · Senate Feb 26, 2026

How they voted

280
Passed · 2 other
Total votes 30
Feb 26, 2026
D Democratic13
12 Yea 1
92% Yea
R Republican17
16 Yea 1
94% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
10
Key actions
4
Committee
1
Amendments
2
Mar 23, 2026
Lower · Passed
DPA
lower
Feb 26, 2026
Upper · Passed
PASSED
upper
Feb 26, 2026
Upper · Passed
DPA
upper
Feb 18, 2026
Upper · Passed
DP
upper
1 primary · 1 co-sponsor

Sponsors