You are invited to participate in a survey regarding your experience using the AHCCCS website. This survey will take approximately two minutes. Your responses will help us ensure that you have a high quality experience.
On April 4, 2013, AHCCCS hosted a meeting with hospital providers to discuss the Governor’s proposal to expand Medicaid
coverage through hospital assessment funding. In this meeting, AHCCCS presented some of the principles and next steps in
moving forward with this plan.
AHCCCS will form workgroups of hospital representatives to work through the methodology and issues related to the
assessment. If you are interested in participating, please contact Jean Ellen Schulik at
AHCCCS Hospital Assessment Workgroup
Hospital Assessment Workgroup Presentation May 8, 2013
Below please find the AHCCCS Draft Proposed Hospital Assessment Rule and the associated model. These
documents will be discussed at the Hospital Workgroup meeting on August 22 and are available for your written
comments until September 4, 2013. Please send your written comments to
FFSRates@azahcccs.gov. AHCCCS expects to post a proposed rule in
November, with a 30 day formal public comment period, for expected implementation of the final rule on
January 1, 2014.
At the request of Workgroup members, below please find an updated proposed model which includes the
SFY 15 impacts by hospitals. The SFY 15 impacts are for illustration purposes only and will change as
AHCCCS updates its budget projections for SFY 15, and based on possible changes to peer group assessment
rates as revenues and expenses are monitored on an ongoing basis. Other than the addition of SFY 15 data,
this model is identical to the August 22, 2013 version except for the reclassification of one urban hospital
which was incorrectly included in the rural hospital peer group.
Proposed Model Including SFY 15 impacts
On September 20, 2013, AHCCCS submitted the statewide hospital assessment proposal to CMS. Below are links with the
narrative request and assessment model. After carefully reviewing comments, AHCCCS made the following changes
from the model distributed to hospitals on August 22, 2013:
AHCCCS will post to this website CMS action on this request, and the proposed state rule will be
posted for public comment on or about November 15, 2013.
As has been discussed in each workgroup meeting, AHCCCS considers the development of the hospital assessment
to be an iterative process. This proposed rate is for the first six months of calendar year 2014 only, and
further workgroup meetings and modeling will be completed for the State Fiscal Year 2015
(July 1, 2014-June 30, 2015) rate period.
CMS Request 9/20/13
Initial Proposed Assessment Model (see Updates below)
Subsequent to the submission of this assessment model to CMS, a minor change was made to the
model to account for a separately licensed hospital that falls into one of the exemption
categories that is located within a larger hospital which is subject to the assessment. A very
small number of discharges associated with the separately licensed facility were reduced from the
hospital’s total number of discharges. Because the number of discharges was so small, this change
does not impact the overall 2014 rate, and it does not result in changes to the assessment amounts
for any other hospital.
As noted above, the proposed assessment rate is limited to the first six months of calendar year 2014.
AHCCCS anticipates that a new analysis will be completed in order to determine the assessment rate for
the period of July 1, 2014 through June 30, 2015 (State Fiscal Year 2015). Modeled results for the
State Fiscal Year 2015 period are provided for informational purposes only and the actual SFY 2015
rates will be updated based on further analysis, Workgroup discussions and updated data.
Projected Coverage Payments
As discussed in Workgroup meetings, the projected coverage payments displayed in the model represent
payments associated only with those populations funded by the hospital assessment. See the
Assessment Population Chart at the top of this page for a summary of populations funded by the
assessment. The projected coverage payments do not represent the full impact to hospitals of the
various changes in coverage expected beginning January 1, 2014, including the expansion of coverage
for children and the woodwork effect on traditional Medicaid populations. Hospitals should not use
the projected coverage payments to estimate the total increase in hospital revenue associated with
the coverage changes beginning January 1, 2014.
Revised CMS Request
Revised 2014 Assessment Model (including 2015 data)