• Analysis or Summary
  • May 8, 2017

Arizona Health Care Cost Containment System

Status: Extension approved September 2016; Amendments approved December 2016, January 2017

Waiver Approval Period: Oct. 1, 2016 through Sept. 30, 2021

Key Themes from Waiver:

  • Behavioral health
  • Integrated care
  • Managed care
  • Supplemental funding
Key Points:

  • The state’s Medicaid program, the Arizona Health Care Cost Containment System (AHCCCS), is operated through this waiver entirely as a managed-care model and services are delivered by capitated MCOs. 
  • The Safety Net Care Pool (SNCP) allocates funds to hospitals and other providers to offset the cost of uncompensated care, but funds are being phased out through calendar year 2017. In January 2017, CMS approved a waiver amendment to continue to phase out SNCP funding for Phoenix Children’s Hospital in 2017. 
  • As part of the waiver, most children participating in the Children’s Rehabilitative Services (CRS) program, which serves children with complex health needs, have their specialty, behavioral and acute care integrated in the CRS health plan. The CRS health plan is a single MCO the state contracts with that is specifically designed to deliver care to these children.
  • Under the waiver, children in foster care receive Medicaid acute care services through an MCO dedicated to this population.
  • The January 2017 amendment creates the Targeted Investments Program to provide incentive payments to providers for increasing physical and behavioral health care integration and coordination for individuals with behavioral health needs. There will be a specific project within this program targeted at individuals transitioning to the community from the criminal justice system.
  • Arizona’s waiver document mentions the state has an initiative in place outside of the waiver to encourage employment through referrals and connect interested Medicaid beneficiaries to employment supports. This initiative is neither tied to Medicaid eligibility nor a condition of employment.

Association Principles: This waiver is consistent with CHA’s principles.

Association Contact: Shannon Lovejoy, (202) 753-5385