If your assisted living facility in Arizona accepts AHCCCS or ALTCS residents, your insurance structure must meet specific contractual standards.
When insurance does not meet AHCCCS contract requirements, it can delay approval, interrupt payments, create compliance issues, and expose the facility to contract termination.
What Is AHCCCS?
AHCCCS (Arizona Health Care Cost Containment System) is Arizona’s Medicaid program. Facilities operating under ALTCS must comply with elevated insurance standards.
Typical Liability Requirements
Most AHCCCS-related contracts require:
$1,000,000 per occurrence
$3,000,000 aggregate
Carrying lower limits can disqualify your contract.
Abuse & Molestation Requirements
Facilities working with AHCCCS residents commonly need:
$500,000 Abuse & Molestation sublimit
Lower sublimits can create compliance concerns and uninsured exposure.
Professional Liability Structure
Professional liability must clearly cover:
- Medication administration
- Care planning
- Staff supervision
- Resident monitoring
Workers Compensation
If you have employees, workers compensation is mandatory in Arizona and subject to compliance review.
Certificates of Insurance
AHCCCS contracts often require updated COIs, additional insured wording, and proof of limits.
Common Mistakes
- $1M/$2M instead of $1M/$3M limits
- $100K abuse sublimits
- Outdated certificates
- No umbrella when contract requires excess coverage
Recommended Structure
$1M / $3M liability
$500K Abuse minimum
Strong professional liability
Workers comp compliance
Auto coverage if transporting residents
For a contract and policy review, contact Prosperity North Advisors to schedule a consultation.