The Arizona Senate Health and Human Services Committee meeting on August 18, 2025, spotlighted a critical issue affecting the state's behavioral health community: the controversial "8-minute rule." This regulation, implemented earlier this year, mandates that service providers bill for a minimum of eight minutes of service, a significant shift from the previous allowance of two-minute increments.
Laurie Henderson, a representative from the Arizona Council of Behavioral Health, voiced urgent concerns about the rule's detrimental impact on service delivery. She reported that 82% of surveyed organizations experienced budget cuts, with 60% reducing services due to the financial strain caused by the new billing requirement. Henderson highlighted that many essential interactions with clients, particularly in case management, often fall short of the eight-minute threshold, leading to a staggering 30% revenue drop for her organization alone.
The meeting revealed a growing consensus among providers that the 8-minute rule is exacerbating existing challenges in an already underfunded system. Henderson noted that the combination of this rule and a recent moratorium on payments has forced some organizations to close their doors, affecting thousands of clients statewide.
Senator Gonzales echoed these concerns, suggesting that the rule may inadvertently harm ethical providers while allowing less scrupulous actors to evade accountability. The committee acknowledged the need for a reevaluation of the rule, with Henderson proposing two solutions: reversing the 8-minute requirement and implementing a 10-15% rate increase specifically for behavioral health services.
As the meeting concluded, the urgency for legislative action was palpable. Providers are calling for immediate support to ensure they can continue delivering vital services to Arizona's most vulnerable populations. The committee's discussions signal a critical juncture for behavioral health policy in the state, with potential implications for the future of care accessibility and quality.