SB 1672 Arizona Senate · 57th Legislature - Second Regular Session

AHCCCS; antipsychotic drugs; authorization

This bill (SB 1672) modifies Arizona's Medicaid program (AHCCCS) to change how coverage is provided for prescription antipsychotic drugs. It directly affects AHCCCS members aged 18+ with a serious mental illness diagnosis who need FDA-approved antipsychotic medications. The key provision prevents prior authorization delays for these drugs, except when a step therapy protocol requires documented failure to respond to two distinct antipsychotics. This protocol must be processed electronically in real-time and considers two paid claims for different preferred antipsychotics as meeting the step therapy requirement. The bill applies only to evidence-based antipsychotic drugs and does not affect generic drug use or necessary safety reviews.
Bill status passed 3 of 5 stages cleared
Introduction
Feb 2026
Committee Review
Mar 2026
Senate Passage
Mar 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 (03/11/2026) · 4 edits · Mar 11, 2026
MODERATE
The bill was reformatted into the official Senate Engrossed version while retaining the core policy of limiting prior authorization for antipsychotic drugs. The most significant substantive change is the addition of a new exemption allowing the state to collect federal statutory rebates and enter into supplemental rebate contracts for preferred drug placement, which were not explicitly mentioned in the introduced version. Additionally, the criteria for bypassing step therapy protocols were clarified to include a five-year lookback period for prior claims.
Scope change
The bill's scope remains focused on the Arizona Health Care Cost Containment System (AHCCCS) and prescription antipsychotic drugs for members aged 18 and older with serious mental illness, but the exemptions section was expanded to include specific rebate mechanisms.
REQUIREMENT

Added a new paragraph (F.4) explicitly permitting the collection of federal statutory rebates from drug manufacturers.

Added a new paragraph (F.5) explicitly permitting supplemental rebate contracts for preferred drug list placement.

Clarified the step therapy bypass criteria to require that prior drug trials occurred within the previous five years.

TECHNICAL

Converted the document from a draft introduction format to the official Senate Engrossed legislative text.

Floor votes · Senate Mar 11, 2026

How they voted

252
Passed · 3 other
Total votes 30
Mar 11, 2026
D Democratic13
11 Yea 2 Nay
84% Yea
R Republican17
14 Yea 3
82% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
10
Key actions
5
Committee
2
Amendments
2
Mar 23, 2026
Lower · Passed
DP
lower
Mar 11, 2026
Upper · Passed
PASSED
upper
Mar 10, 2026
Upper · Passed
DPA
upper
Feb 24, 2026
Upper · Passed
DPA
upper
Feb 11, 2026
Upper · Passed
DP
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of John Kavanagh
John Kavanagh
RRepublican
AZ
3