The Arizona Health Care Cost Containment System (AHCCCS) last week terminated its December 2023 ALTCS-EPD contract awards, resetting a procurement process that has been contested for nearly two years.
AHCCCS said it will issue a new request for proposals for the ALTCS-EPD program, with submissions expected in fall 2026.
Mercy Care, Banner-University Family Care, and UnitedHealthcare Community Plan will continue to serve ALTCS-EPD members through September 30, 2026.
In December 2023, AHCCCS awarded statewide contracts to Arizona Complete Health–Long Term Care (Centene) and UnitedHealthcare Community Plan, effective Oct. 1, 2024. The awards would have displaced Mercy Care and Banner–University Family Care, the incumbent ALTCS-EPD plans, and covered about 26,000 elderly and physically disabled members. It was the first time in program history that members statewide were to have a choice between two plans.
In September 2024, AHCCCS denied appeals from Mercy Care, Banner–University Family Care, and Blue Cross Blue Shield of Arizona Health Choice, finding that the challengers either filed too late or failed to show disadvantage under the procurement process. That decision allowed AHCCCS to move forward with contracts awarded to Centene and UnitedHealthcare.
On May 2, 2025, AHCCCS announced a settlement agreement — excluding Health Choice — that awarded the ALTCS-EPD Contract to four health plans beginning Oct. 1, 2025:
- UnitedHealthcare Community Plan
- Banner–University Family Care Advantage
- Mercy Care
- Arizona Complete Health–Long Term Care (Centene)
All four were slated to serve the Central GSA, while Arizona Complete Health and UnitedHealthcare were assigned the Northern GSA. In the Southern GSA, Arizona Complete Health, Banner, Mercy Care (Pima County only), and UnitedHealthcare were awarded contracts. The three-year agreements, with options to extend through 2028, were billed as the most significant program changes since 2017. Read more in past coverage in The Hertel Report.
In July, The Hertel Report reported that on June 20 that the Maricopa County Superior Court stayed AHCCCS’s ALTCS-EPD contract awards, blocking both the original 2023 awards to Centene and UnitedHealthcare and the May 2025 settlement that added Mercy Care and Banner–University Family Care. The court found that all contracts depended on the legitimacy of the procurement process and could not move forward while Blue Cross Blue Shield of Arizona’s appeal was unresolved. Judge Joseph Mikitish stressed that settlements did not erase the right to judicial review and that preserving competition is central to procurement law. Current contracts with Mercy Care, Banner and UnitedHealthcare remained in place while the case continued.
In August 2025, AHCCCS announced a court-ordered stay blocked implementation of those new awards. The agency responded by extending existing contracts with Mercy Care, Banner–University Family Care, and UnitedHealthcare Community Plan through Sept. 30, 2026, ensuring continuity of services.
AHCCCS said in its September 19 press release that it will keep members updated as it prepares the new ALTCS-EPD procurement.
Leave a Reply
You must be logged in to post a comment.