How to Start a Medicaid Home Care Agency in Arizona
Start a Medicaid home care agency in Arizona: licensing, Medicaid enrollment, HCBS waivers, EVV, disability waiver and VA provider steps.
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Sagar Kumar, COO and Co-Founder, Verveware
Arizona's Medicaid long-term care program is built almost entirely around managed care, so your real customers are the ALTCS health plans.
Starting a Medicaid home care agency in Arizona means getting through state licensing, Medicaid provider enrollment, waiver program contracting and electronic visit verification (EVV) before you bill your first visit. I'm Sagar Kumar, COO of Verveware, an EVV and home care software company. Our team builds software for Medicaid home care agencies and works with them every day. This guide sums up what we know about the Arizona process and links to the official sources. Rules and fees change, so confirm every step with the agency linked.
1. Licensing: Which Agency and What License
Licensing agency: Arizona Department of Health Services (ADHS), Bureau of Medical Facilities Licensing.
License type(s): Home Health Agency license (ADHS); non-medical home care is generally not licensed by ADHS, but AHCCCS registration is required to bill Medicaid.
What this means in Arizona: Arizona does not license non-medical home care agencies, but you must register as an AHCCCS provider to bill Medicaid. Skilled home health agencies are licensed by the Arizona Department of Health Services (ADHS).
Non-medical (personal care, homemaker, companion) and skilled home health are usually regulated separately. Home health that bills Medicare also needs CMS certification, typically through a state survey or an approved accrediting organization. Fees, policy and procedure requirements, administrator qualifications and survey timelines change, so confirm current requirements with the Arizona Department of Health Services (ADHS).
2. Medicaid Provider Enrollment
Medicaid in Arizona is run by Arizona Health Care Cost Containment System (AHCCCS). Typical steps:
Form your legal entity, then get an EIN and a Type 2 organizational NPI from NPPES.
Get your state license or certification (see above) before you apply.
Submit the Medicaid provider enrollment application through the state's provider portal, including ownership disclosures, screening and any site visit. Make sure no owner or staff member appears on the HHS-OIG exclusion list.
Get approved or contracted for specific waiver services with the operating agency, and credential with managed care plans where LTSS is delivered through MCOs.
Set up EVV and billing (see below).
Managed care in Arizona: Long-term care runs through the Arizona Long Term Care System (ALTCS). ALTCS-EPD (elderly and physically disabled) members are served by contracted health plans, so you will need contracts with the plans in your county after you register with AHCCCS.
3. HCBS Waiver Programs in Arizona
Home- and community-based services (HCBS) waivers pay for most Medicaid personal care in the state. The main programs are:
Arizona Long Term Care System (ALTCS) – Elderly & Physical Disabilities (EPD), via 1115 waiver – administered/operated by AHCCCS and contracted health plans. Funding: Medicaid (federal/state).
ALTCS – Developmental Disabilities (DD) – administered/operated by Department of Economic Security, Division of Developmental Disabilities (DES/DDD). Funding: Medicaid (federal/state).
Program names and operating agencies change through waiver renewals, so check the current waiver list with the Medicaid agency.
4. Human Services and Aging Programs
The state's human services department is Arizona Department of Economic Security (DES). Aging services are coordinated by DES Division of Aging and Adult Services, together with local Area Agencies on Aging. Area Agencies on Aging also run Older Americans Act programs such as homemaker and respite. Funding: these are federal Older Americans Act grants plus state funds. They are not Medicaid. Many agencies combine Medicaid waiver referrals with these programs.
5. Disability Services
In Arizona, in-home support for people with disabilities is available through the DES Division of Developmental Disabilities (DDD), which administers ALTCS-DD services such as attendant care, habilitation and respite. Contact DES Division of Developmental Disabilities (DDD) for provider enrollment. These programs help you serve younger adults with disabilities, not just seniors. Funding: Medicaid waiver (federal/state).
Arizona also has a vocational rehabilitation program, Arizona DES Rehabilitation Services Administration (RSA) – Vocational Rehabilitation, which helps people with disabilities find and keep jobs. VR is funded under the federal Rehabilitation Act, is not Medicaid, and is a minor referral source for most home care agencies.
6. VA Home Care for Veterans (Federal, Not Medicaid)
Veterans may get in-home care through the U.S. Department of Veterans Affairs. Funding: these are federal VA benefits. They are not Medicaid and not a state program.
Homemaker and Home Health Aide (H/HHA) Care: personal care purchased by the VA from community agencies.
Veteran-Directed Care: Veterans manage a budget and hire their own workers, often through an Aging and Disability Network partner.
VA Community Care: the authority the VA uses to buy care from community providers.
How to become a VA provider: join the Community Care Network (CCN) through the regional third-party administrator, or sign a local agreement with your VA medical center. Start at the VA community care provider page.
7. EVV Requirements
The federal 21st Century Cures Act requires EVV for Medicaid personal care services and home health services (CMS EVV guidance). Every visit must record the service type, the member, the date, the location, the worker, and the start and end times. Arizona EVV system/aggregator: Sandata (AHCCCS state EVV, open model with alternate vendors). If you use your own EVV system, confirm it can integrate with the state aggregator before you go live. Claims without a matching EVV record may be denied.
8. Background Checks and Training
Expect fingerprint-based criminal background checks, state abuse and neglect registry checks, and monthly OIG/state exclusion screening for all direct care staff. Training and competency requirements differ by license type: home health aides need federal 75-hour aide training (42 CFR 484.80), and non-medical caregiver training hours are set by state rule, so confirm current requirements with the Arizona Department of Health Services (ADHS).
Startup Checklist
Choose your service line (non-medical, skilled or both) and the matching license
Build policies, hire an administrator, and set up insurance and bonding
Get licensed, enroll in Medicaid and contract for waiver services
Connect EVV and billing, then add disability program and VA referral sources
FAQ
Do I need a license to provide non-medical home care in Arizona?
Arizona does not license non-medical home care agencies, but you must register as an AHCCCS provider to bill Medicaid. Skilled home health agencies are licensed by the Arizona Department of Health Services (ADHS). Confirm with Arizona Department of Health Services (ADHS).
Who pays for home care under Arizona waivers?
Medicaid (federal/state) through the HCBS programs above. Older Americans Act services, vocational rehabilitation and the VA are separate funding sources.
Is VA home care part of Medicaid?
No. VA Homemaker/Home Health Aide care and Veteran-Directed Care are federal veterans benefits paid by the VA.
Is EVV required for private-pay clients?
The federal EVV mandate covers Medicaid-funded personal care and home health. Many agencies still use EVV for every client to keep operations consistent.
How long does it take to start billing Medicaid?
It typically takes several months to cover licensing, enrollment and waiver contracting. Confirm current processing times with the Arizona Department of Health Services (ADHS) and AHCCCS.
Launch Your Arizona Agency on Verveware
Verveware is home care agency management software built by operators who run a Medicaid home care agency. It brings EVV, scheduling, care plans, billing and state program compliance into one platform. Book a Verveware demo to see how it can help you launch in Arizona and grow your Medicaid census.
