ADAP Shortfall Relief - Arizona Department of Health Services proposes to use ADAP Emergency Relief Funds (ERF) to address critical challenges facing the state's HIV/AIDS program. These are crucial to prevent an ADAP waiting list, and maintain comprehensive ADAP services. STATE DEMOGRAPHICS: Arizona has a population of approximately 7.3 million people. Hispanic/Latinos are 32% of the state's population, making up the largest minority group. This population continues to grow significantly. Blacks/African Americans are approximately 5% of Arizona's population. Whites are the majority population. The Black population in Maricopa County is growing nearly seven times faster than the white population, making it one of the fastest-growing regions for Black people in the country. Despite the growth in minority populations, Arizona faces challenges in addressing racial disparities. HIV DEMOGRAPHICS: As of 2022, there were 19,894 people living with HIV/AIDS in Arizona. New diagnoses: 975 cases in 2022, a 20% increase from 2021 - Incidence rate: 13.2 cases per 100,000 population in 2022 Most affected groups were Age: 30-34 years (33.4 cases per 100,000) and 25-29 years (31.9 cases per 100,000), Gender: Males (22.8 per 100,000) vs females (3.7 per 100,000), Race/ethnicity: 42% Hispanic, 30% White; highest incidence rate among Black individuals (42.3 per 100,000) The Hispanic/Latino population has experienced a 181% increase in new HIV transmissions since 1988. Despite being a smaller demographic, the Black population is disproportionately affected by HIV, accounting for about 16% of new HIV cases in 2021. Risk factors: 56% of new cases reported men who have sex with men (MSM) as a risk behavior. The epidemic disproportionately affects young adults, racial and ethnic minorities, and men who have sex with men. ARIZONA ADAP OVERVIEW Arizona's ADAP currently serves approximately 2,600 clients, providing access to a comprehensive formulary of HIV medications and related treatments. Key environmental factors impacting the program include: Loss of Ryan White Part A funding, anticipated reduction in rebate revenue due to Medicare changes, and increasing prescription drug costs for uninsured clients. Need for Additional Resources - Preventing ADAP Waiting List ERF will maintain the comprehensive formulary, including medications for HIV and co-infections like Hepatitis C. Without funding, Arizona would need to cut back drug options, potentially removing Hepatitis C treatments and limiting access to Long-Acting Antiretroviral Therapy (LAART). ADDRESSING RESOURCE REDUCTION Funds will mitigate significant funding shortfalls from lost Ryan White Part A funding, reduced rebate revenue, and increased prescription costs. ERF will support cost-effective drug procurement leveraging 340B pricing. ADDRESSING INCREASED TREATMENT NEEDS ERF will support Arizona's efforts to end the HIV epidemic by: Maintaining access to LAART, improving medication adherence, preserving treatment options for HIV/HCV co-infected individuals, supporting efficient Pharmacy Benefits Management services, and managing client increases. The funds will enable Arizona to maintain copay assistance and preserve health insurance assistance. PLANNED USE OF ADAP ERF: If received, ADAP ERF will be used to: maintain the comprehensive drug formulary, offset funding shortfalls, support cost-effective drug procurement and dispensing, enhance eligibility and enrollment services, provide copay and health insurance assistance, and ensure uninterrupted access to life-saving medications for approximately 2,600 clients. Arizona anticipates achieving high viral suppression rates among ADAP clients, and maintaining normal operations without implementing a waiting list, enrollment caps, or formulary reductions. The state will continue implementing cost-saving measures, including enrolling eligible clients into health care coverage and Medicaid, ensuring ADAP remains the payer of last resort.