Arizona 2025 Regular Session

Arizona House Bill HB2795

Caption

Single payor; health care

Summary

HB2795 would create a new “Arizona Health Program” within the Arizona Health Care Cost Containment System (AHCCCS) to provide comprehensive health coverage to all Arizona residents who choose to enroll. The bill states that residents are eligible and entitled to enroll, including newborns, and that enrollees would pay no premium or other charge for coverage. It also preserves the ability of residents to keep buying private health insurance, so the program would be optional rather than mandatory. The bill directs the program’s board of trustees to design a benefit package within 12 months that would include the services currently covered under AHCCCS, the Arizona Long-Term Care System, KidsCare/CHIP, state employee health benefits, state retiree health plans, and Medicare. The board would also have to identify any needed federal waivers, conduct a cost analysis, and develop a financing proposal. That financing proposal must include a payroll tax on wages and self-employment income, a new income tax on other income, progressive rates, income exemptions, and a Medicare-related exemption. The program could not be implemented until the Legislature adopts the revenue proposal or an equivalent funding plan. The bill would significantly affect Arizona health law by adding a new chapter to Title 36 and creating a state-run single-payer-style health coverage structure. It would shift administration to AHCCCS, establish a large governing board with representatives from consumer groups, providers, labor, employers, and legislative appointees, and require direct contracting with participating providers while prohibiting use of private insurers or third-party administrators to manage the program. It would also set payment rules that treat program payments as full payment for covered services. Because no committee transcripts or votes are provided, there is no recorded legislative debate or vote history to gauge formal sentiment. Based on the bill text alone, the measure appears strongly supportive of universal public coverage and health care financing reform, but it also signals major tax and system-structure changes that would likely draw scrutiny. The short title, “End of Privatization of Health Care Act,” suggests the sponsor’s intent to frame the bill as a major policy shift away from private insurance administration. Likely points of contention include the proposed payroll and income taxes, the requirement that employers pay most of the payroll tax, the inclusion of Medicare and other existing public benefits in the new coverage design, and the prohibition on using private insurers to administer the program. Supporters would likely focus on universal access, no-premium coverage, and expanded benefits, while opponents would likely focus on cost, tax burden, implementation complexity, and the need for federal waivers and legislative approval before the program can begin.

Impact

HB2795 would amend Title 36 by adding a new chapter establishing the Arizona Health Program and assigning AHCCCS responsibility for implementation, rulemaking, provider contracting, benefit design, and administration. It would create a new board of trustees, require a comprehensive benefit package, and mandate a financing proposal built around new payroll and income taxes, subject to later legislative adoption. The bill would not itself immediately replace existing programs, but it would create the legal framework for a statewide public coverage system and could affect AHCCCS, KidsCare, long-term care, state employee and retiree health plans, Medicare coordination, employers, taxpayers, health care providers, and private insurers.

Sentiment

No committee discussion or vote data is provided, so there is no measurable legislative sentiment from hearings or roll calls. From the bill text, the sponsor’s intent is clearly pro-expansion and pro-public coverage, using language that presents the proposal as a move toward universal health care and away from privatized administration. The absence of recorded support or opposition in the supplied materials means any broader sentiment can only be inferred from the bill’s ambitious scope and the likely policy divide it creates.

Contention

The main likely points of contention are the financing mechanism and the scale of the policy change. The bill would require a new payroll tax and a new income tax, with progressive rates and employer/employee cost-sharing, which may concern taxpayers and businesses. It also requires the board to seek federal waivers to protect federal funding, highlighting implementation risk. Another major issue is the bill’s prohibition on using health insurers or third-party administrators to manage care, which would be opposed by private insurance interests but supported by advocates of a single-payer model. Supporters are likely to emphasize universal eligibility, no premiums, and broad benefits; opponents are likely to focus on cost, administrative feasibility, and disruption to existing coverage arrangements.

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.