prepaid capitated contractors; cost reports

SB 1399 requires health plans with fixed-fee contracts (prepaid capitated contracts) with Arizona's healthcare administration to submit annual reports by December 1. These reports must detail the percentage of contract funds spent on direct patient care versus administrative costs, broken down by specific categories. The reports are submitted to the joint legislative budget committee, governor, and relevant health committees. This bill mandates transparency about how funds are allocated, directly affecting health plans operating under these contracts. It does not change funding levels or healthcare services, only requiring standardized financial reporting.