2 Of 3 Arizona Medicaid MCOs Audited Did Not Complete Required Mental Health & SUD Parity Analyses

Two of three Arizona Medicaid managed care organizations (MCOs) selected for a federal audit did not complete required annual analyses to demonstrate that prior authorization requirements for mental health and substance use disorder (SUD) services were no more restrictive than requirements for medical and surgical services during the 2022-2023 fiscal year. As a result, the Arizona Health Care Cost Containment System (AHCCCS) could not demonstrate that the two MCOs complied with federal mental health and SUD parity requirements related to prior authorization.

The three MCOs collectively covered about 58% of Arizona's Medicaid managed care enrollees during the audit . . .