On October 1st, 2014, AHCCCS launched a new inpatient hospital reimbursement methodology utilizing All Patient Refined, Diagnosis-Related Groups or APR-DRGs. The APR-DRG payment methodology is better aligned with the agency’s focus on improved patient care and health outcomes for its members and incentivizes quality of care. This payment methodology was rebased in 2017 and 2021.
AHCCCS is partnering with Milliman Inc. to conduct a 2027 rebase of the APR-DRG reimbursement methodology. Currently, AHCCCS is on Version 38 of 3M's DRG software, and is looking to move to Version 43 of the software. The rebase process is underway, with an expected completion of October 1, 2027.
| DRG analysis | 4/29/2026-8/31/2026 |
| First Workgroup Meeting | 08/31/2026 |
| Tribal Consultation | |
| Second Workgroup Meeting | 09/21/2026 |
| Notice of Proposed Rulemaking | |
| Comment Period | |
| Notice of Final Rulemaking to GRRC | |
| Implementation of New Version DRG |
