Arizona applied to CMS for a section 1115 waiver that would allow the state to limit retroactive coverage for Medicaid beneficiaries.
Arizona's Medicaid program, the Arizona Health Care Cost Containment System, has a three-month retroactive eligibility period, which allows those applying for Medicaid coverage to receive benefits for services provided three months prior to their application.
The state now seeks to limit retroactive coverage to the month of an individual's application. Arizona officials said this request is in line with the state's historical waiver authority before January 2014.
The goals are "to encourage members to obtain and maintain health coverage, even when healthy; encourage members to apply for Medicaid promptly to promote continuity of eligibility and enrollment for improved health status; and contain Medicaid costs," the state's announcement reads.
Arizona estimates the new proposal would save $39.4 million in fiscal year 2019, according to the waiver application.
But theHealth System Alliance of Arizona expressed some concerns about the proposal in a comment letter attached to the waiver application, saying the decision would create more uncompensated care costs for hospitals.
"This Waiver Amendment suggests that one of the purposes of this proposal is to 'better align Medicaid policies with commercial health insurance policies,'" the group wrote. "While we can generally agree that in some instances, mirroring the practices in the commercial market with that of our Medicaid program might be appropriate, we soundly disagree that this is an appropriate policy position in this instance."
CMS is currently reviewing the state's application. CMS approved a similar application for Iowa last November.
Morgan Haefner contributed to this report.
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