Arizona HB 2333: appropriation; coordinated reentry planning

Bill Text

HB2333 - 572R - I Ver 

 REFERENCE TITLE: insurance; prosthetics; orthotics; reporting requirements

 State of Arizona

 House of Representatives

 Fifty-seventh Legislature

 Second Regular Session

 2026

 HB 2333

 Introduced by 

 Representative 
 Heap

AN 
ACT

Amending Title 
20, chapter 4, article 3, Arizona Revised Statutes, by adding section 20-826.06; 
amending Title 20, chapter 4, article 9, Arizona Revised Statutes, by adding 
section 20-1057.21; amending Title 20, chapter 6, article 4, Arizona 
Revised Statutes, by adding section 20-1342.09; amending Title 20, 
chapter 6, article 5, Arizona Revised Statutes, by adding section 20-1404.07; 
relating to health insurance.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 
20, chapter 4, article 3, Arizona Revised Statutes, is amended by adding 
section 20-826.06, to read:

START_STATUTE20-826.06. Prosthetic devices and orthotic devices; coverage; reimbursement 
rates; annual report

A. A hospital service corporation or 
medical service corporation that issues, amends, delivers or renews a 
subscription contract on or after January 1, 2027 shall provide coverage for 
prosthetic devices and orthotic devices that is at least equivalent to the 
coverage that is currently provided under Medicare Part B, and the coverage may 
not be provided under less favorable terms or conditions than any other medical 
or surgical benefits under the subscription contract.

B. Coverage under a subscription 
contract for prosthetic devices and orthotic devices shall include all of the 
following:

1. The purchase, fitting, adjustment, 
repair and replacement of one or more prosthetic devices or orthotic devices as 
needed to accomplish both of the following, as applicable:

(a) The 
replacement of all or part of a missing body part and its adjoining tissues.

(b) The 
replacement of all of the function of a permanently useless or malfunctioning 
body part as necessary to allow the subscriber to do all of the following:

(i) Complete 
activities of daily living or essential job-related activities.

(ii) Perform 
physical activities, including running, biking, swimming or strength training, 
to maximize the covered person's whole body health and lower and upper limb 
function.

(iii) Shower or 
bathe.

2. All materials and components that 
are necessary to use the device, including instructions on how to use the 
device.

3. Habilitative or rehabilitative 
coverage benefits.

C. A prosthetic device or orthotic 
device shall be medically necessary as determined by a subscriber's health care 
provider, and the health care provider shall choose the most appropriate model 
of prosthetic device or orthotic device that adequately meets the medical needs 
of the subscriber and that allows the subscriber to perform activities as 
provided in subsection B, paragraph 1 of this SECTION.

D. A hospital service corporation or 
medical service corporation shall include in the subscription contract language 
that describes both a subscriber's rights under this section and any benefit 
denial letters.� If a hospital service corporation or medical service 
corporation denies coverage for a prosthetic device or orthotic device, the 
hospital service corporation or medical service corporation shall issue the 
denial of coverage in writing.

E. This section does not prohibit a 
hospital service corporation or medical service corporation from imposing cost 
sharing for prosthetic devices or orthotic devices if the cost sharing is not 
more restrictive than the cost sharing requirements for inpatient physician or 
surgical services.� prosthetic device and orthotic device coverage may not 
incur separate cost sharing requirements that are applicable only to coverage 
for prosthetic devices or orthotic devices.

F. A hospital service corporation or 
medical service corporation shall ensure that a subscriber has access to 
medically necessary clinical care and to prosthetic devices and orthotic 
devices and technology from not less than two distinct prosthetic device and 
orthotic device providers that are located in this state.

G. If medically necessary covered 
prosthetic devices and orthotic devices are not available from an in-network 
provider, a hospital service corporation or medical service corporation shall 
provide a process to refer a subscriber to an out-of-network 
provider and shall fully reimburse the out-of-network provider at a 
mutually agreed on rate, less any applicable cost sharing as determined on an 
in-network basis.

H. A hospital service corporation or 
medical service corporation shall provide coverage for the replacement of a 
covered prosthetic device or orthotic device or for the replacement of any part 
of the device, as applicable, without regard to CONTINUOUS use or useful 
lifetime restrictions if an ordering health care provider determines that the 
device or part of the device needs to be replaced