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Establishing a Parents as Paid Caregivers Program

This bill establishes a Parents as Paid Caregivers program within Arizona's Medicaid system, creating new regulations for parents who provide care for minor children with disabilities. The bill defines specific parameters for parent caregivers, including limiting care services to 40 hours per week per child, restricting billing for certain household tasks, and requiring parents to be Arizona residents for at least six months. It mandates an electronic visit verification system to track care services, with unique modifiers to distinguish between parent and non-parent providers. The bill requires quarterly reporting to the legislative budget committee on program utilization, including details like emergency department visits, enrollment growth, and approved care hours. Additionally, by October 2025, the state must implement a standardized assessment tool to determine extraordinary care needs, separating routine parental tasks from billable care services. The bill also introduces new oversight for federal waiver proposals, requiring legislative approval for significant changes to Medicaid coverage or services. To support the program's implementation, the bill includes supplemental appropriations totaling over $412 million from prescription drug rebate and developmental disabilities funds, and mandates a special audit of the program by August 2026 to review implementation and compare practices with other states.1