October 1, 2009

Fiscal Year 2010 Budget Reductions for Arizona Health Care Cost Containment System: Summary of Issues

The Arizona Health Care Cost Containment System (AHCCCS) has proposed eliminating the KidsCare Program that provides health insurance coverage to 46,957 children in families earning from 100% to 200% of the federal poverty level. All Arizona departments were told to prepare for a 15% budget cut by assessing functions to determine what they could no longer afford to perform and to consider how to refocus services. To meet its target reduction of $19.4 million, AHCCCS also proposed a 35% reduction in payments to private hospitals to offset charity care and a 30% reduction to graduate medical education.