AHCCCS Budget Proposals

The State of Arizona's fiscal year begins on July 1st and ends on June 30th of the following year. The fiscal year is named according to the calendar year of its last month.

FY2011 Budget

1. Governor's Budget Proposal
   • Prop 204 Rollback

     Fri Feb 12, 2010
     As a result of Arizona's fiscal crisis, the Executive Budget includes the recommendation to roll back the Prop 204 expansion. More information regarding Prop 204 funding and population growth over time is provided below:

     • Adult AHCCCS Eligibility [14KB]
     • FY 2001 MN/MI Expenditures vs. FY 2002-2011 [22KB]
   • AHCCCS Analysis of Executive Budget Recommendation

     Tue Feb 9, 2010
     AHCCCS has developed a summary of the FY 2011 Executive Budget Recommendation that includes both General Fund and Total Fund impacts.

     FY 2011 Executive Budget Recommendation Summary [10KB]

   • FY2011 Budget Recommendation

     Mon Jan 18, 2010
     On January 15, 2010, Governor Brewer presented the Arizona Legislature her recommendations to balance the State's General Fund budgets for Fiscal Years 2010 and 2011. Information as it relates to the AHCCCS program can be found beginning on page 14 of the "State Agency Budgets FY 2011" document on the Governor's website http://www.azgovernor.gov/Budget2011.asp.

2. AHCCCS Budget Request

   Tue Sep 1, 2009
   On September 1, 2009, AHCCCS submitted its FY 2011 budget request to the Governor. The following documents provide a summary of the request:

   • Director's letter to Governor Brewer [62KB]
   • High level summary of increases projected for FY 2010 and FY 2011 [14KB]
   • High level summary by program and line item for FY 2011 as compared to the FY 2010 appropriation [20KB]
   • High level summary by program and line item for FY 2010 as compared to the FY 2010 adjusted appropriation [20KB]
   • High level summary of projected caseload growth [10KB]

FY2010 Budget

1. Budget Reduction Summary

   AHCCCS has updated the summary of the budget reductions and rate freezes to reflect the recent changes as a result of the 5th Special Session and fund transfers that have occurred since FY 2008. As detailed in the document, the Medicaid program has had over $743 million in reductions when all items identified to date are fully annualized. This is not a cumulative number; it simply means these policy changes have reduced the overall AHCCCS budget by $743 million.

   The document details reductions not only contained within the AHCCCS budget but also Medicaid reductions within the Department of Economic Security for the Developmentally Disabled program and the Department of Health Services for Behavioral Health Services.

   Cumulative Budget Reduction Summary [12KB]

2. Capitation Rate Changes

   On September 30, 2009, AHCCCS requested that the Joint Legislative Budget Committee review the proposed capitation rates for contract year ending 2010 as required by the General Appropriations Act. In total, the capitation rates will experience a decrease of -3.0% for acute care and -.4% for ALTCS. The budget assumed an overall rate increase 1.5%. With the decrease the rates result in an estimated savings of -$153 million of which approximately -$37 million is State Match.

   AHCCCS Letter to JLBC [314KB]

3. AHCCCS Potential Impact of a 15% Budget Reduction

   On September 18th, the Governor's Deputy Chief of Staff of Finance and Director of OSPB, Eileen Klein, made a request to state agencies.
   
   The memo requests data from each state agency describing the ramifications and impacts of 15% reductions to their operations should the Legislature look predominately at cuts to close Arizona's remaining state budget deficit of $1.5 billion for FY 2010. Please note that this is a data collection tool, and should not be construed as a proposed budget solution by OSPB or Governor Brewer.
   
   On October 9th, AHCCCS submitted a response about the potential impact of implementing a 15% reduction. The AHCCCS reduction is an adjusted 15% of discretionary or optional state funded programs, the elimination of which would not jeopardize federal stimulus dollars or voter protected programs.

4. Review of the Acute Care Adult Benefit Package

   As a result of FY 2010 reductions, AHCCCS is reviewing and making changes to medically necessary criteria and policy. For updates on recent policy changes, go to the AHCCCS Medical Policy Manual (AMPM). AHCCCS continues to review the acute care adult benefit package to address how cost savings can be achieved in light of the continued budget shortfall and growth in the Medicaid population. Additional information will be made available as further details emerge.

   • Benefit Re-design Proposal [148KB]
   • Benefit Re-design Briefing Announcement [24KB]
   • Benefit Re-design Briefing Summary [65KB ]
   • Benefit Re-design Public Comments [29.2MB]
   • Benefit Re-design Comments from Tribes & Indian Health Stakeholders [7.9MB]