AzHHA-backed legislation awaiting the Governor’s signature.
The disagreements over Medicaid cuts continuing among House Republicans.
How the Supreme Court ruled against hospitals’ interpretation of DSH calculation.
Governor Hobbs accepts director resignations
Late-breaking news Wednesday afternoon: Governor Katie Hobbs announced she accepted the resignation of two state agency directors.
Arizona Health Care Cost Containment System (AHCCCS) Director Carmen Heredia and Arizona Department of Health Services (ADHS) Director Jennie Cunico submitted their resignations to the Governor on Wednesday.
We’re now 109 days into the Fifty-Seventh Legislature – First Regular Session. Here’s where things stand:
1,679 bills posted
145 bills passed
52 bills vetoed
93 bills signed
The legislative freeze in both chambers has officially ended following the resolution of the funding dispute for the developmentally disabled program. Governor Hobbs signed HB2945, the bipartisan compromise that:
Caps family caregiver billing at 40 hours per week.
Establishes accountability metrics for the Parents as Paid Caregivers program.
Utilizes prescription drug rebate funds to support these services.
AzHHA-backed legislation awaits Governor’s signature: SB1291 passed the Senate unanimously this week and now heads to the Governor’s desk.
This bipartisan bill directly results from months of collaboration to streamline credentialing processes, reduce administrative burdens and strengthen access to care.
A special thank you to Senator Hildy Angius (R-Dist. 30) for championing this issue in her first term and helping to advance this legislation.
Requires the distribution of postpartum depression materials by the Arizona Department of Health Services.
Creates an advisory committee focused on maternal mental health and OBGYN shortages across Arizona.
This bill has undergone extensive stakeholder collaboration and reflects our commitment to addressing gaps in women’s healthcare.
Patients deserve decisions for denials to be made by medical professionals: HB2175, also sponsored by Representative Willoughby, advanced from the Senate this week and awaits final action in the House. It ensures that:
Health insurers must have medical directors independently review denials or prior authorization requests based on medical necessity.
Reviews must reflect independent clinical judgment and not solely rely on automated systems or third-party input.
What's next: Stay tuned for more updates on this critical patient-centered bill next week.
AzHHA: Your hospital and healthcare advocate: Our advocacy team is here to support Arizona hospitals and healthcare systems. If you have questions, please contact Damien Johnson, director of government relations.
And finally, our work at the Capitol is only possible with your support.
Whether you're a member or not, the AzHHA Political Action Committee (PAC) is critical in helping elect healthcare champions. Consider making a one-time or recurring donation today.
Disagreements over Medicaid cuts continue among House Republicans
Republicans on the House Energy and Commerce Committee have been immersed in discussions and disagreements over how to structure the billions in Medicaid cuts needed to help offset the Administration’s policy priorities of tax cuts, border security and energy policies in an upcoming budget reconciliation bill.
One concept under discussion is “per capita caps,” which would place limits on the amount of federal funding for expansion populations in states that have expanded Medicaid under the Affordable Care Act (ACA), including Arizona.
Reducing the federal share of these costs would yield massive savings but could lead to millions losing coverage and could force states to cut benefits or raise taxes.
Another proposal is reducing the Federal Medical Assistance Percentage (FMAP) for Medicaid expansion populations to below 90%.
In Arizona, a reduction of the FMAP for the ACA Medicaid expansion to under 80% would trigger a state law that would automatically repeal the ACA expansion in Arizona.
Some moderate Republicans would prefer to limit the amount of Medicaid cuts to well below the $880 billion in savings that the Energy and Commerce Committee is tasked with recommending.
They propose limiting Medicaid policy changes to instituting work requirements, excluding noncitizens from benefit eligibility and mandating more frequent eligibility checks.
What’s next: Despite these internal disagreements, the Energy and Commerce Committee is aiming to hold a markup next Wednesday.
Speaker Mike Johnson maintains that the reconciliation bill will be passed by Memorial Day.
Supreme Court rules against hospitals’ interpretation of DSH calculation
On Monday, the Supreme Court sided with the Department of Health and Human Services (HHS) over how Medicare disproportionate share hospital (DSH) payments are calculated.
The Court found that the Centers for Medicare and Medicaid Services (CMS) does not need to count all beneficiaries enrolled in both Medicare and supplemental security income (SSI) when counting how many low-income patients a hospital treats for purposes of DSH eligibility.
Digging deeper: In order to be eligible for DSH payments, 15% or more days must be attributable to either:
Patients eligible for Medicare Part A SSI or
Patients eligible for Medicaid but not Medicare Part A.
HHS has only been counting individuals when they receive an SSI payment during the month of their hospitalization, not simply if they are eligible for SSI.
Hospitals argued that this undercounts the number of SSI-eligible days for a hospital’s DSH eligibility. Moreover, losing DSH eligibility causes some hospitals to risk losing access to uncompensated care payments and impact their 340B Program participation.
AzHHA joined 25 other hospital associations in filing an amicus brief urging a correction of the DSH calculation.
The Supreme Court upheld two lower court rulings reasoning that SSI should only play a role in DSH calculations when Medicare patients receive cash payments during the same month as their hospital stay because SSI eligibility varies month-to-month depending on income and assets.
Why it matters: If the Supreme Court had ruled in favor of the hospital’s interpretation, hospitals would have received an estimated additional $9 billion annually to help care for the most vulnerable low-income adults in the country.
ACA preventive care mandate hangs in the balance with SCOTUS
Last week, the Supreme Court of the United States (SCOTUS) heard oral arguments regarding the validity of the Affordable Care Act’s (ACA) mandate that health insurers cover preventive care services at no cost to patients.
The mandate covers screenings for high blood pressure, cholesterol, diabetes, depression, HIV and certain cancers; dozens of vaccines; services for pregnant women; domestic violence screenings; and pediatric services including autism and developmental screenings, hearing and vision screenings, and immunizations.
The lawsuitwas brought by a group of Texas employers whose main argument is that the U.S. Preventive Services Task Force (USPSTF) officers, who recommend preventive services for coverage, exercise too much authority without proper oversight.
In defending the law, the Administration argues that the executive branch has sufficient control over USPSTF’s operations because Secretary Kennedy has the power to appoint, oversee and remove USPSTF members.
The current Administration’s defense of the ACA is inconsistent with its position during Trump’s first administration. However, this defense would seem consistent with this Administration's broader interest in upholding executive authority over federal agencies and their functions.
What’s next: Experts believe that the Supreme Court is likely to uphold the constitutionality of the ACA preventive care mandate.
However, if the provision is deemed unconstitutional, the decision could severely jeopardize access to preventive care for the tens of millions of Americans who obtain their coverage on the exchange.
SCOTUS is expected to issue a decision on the case by the end of June.
Arizona faces premium spikes and coverage losses if ACA subsidies expire at end of 2025
While debates on Medicaid cuts, federal agency reorganizations and other important issues are making headlines, the pending expiration of Affordable Care Act (ACA) enhanced premium tax credits looms in the background.
These tax credits assist low- and middle-income individuals with purchasing insurance and are set to expire at the end of 2025 without Congressional action.
Why it matters: The enhanced premium tax credits have contributed to enrollment in the ACA Marketplace doubling from about 12 million in 2021 to about 24 million in 2025.
With the benefit of these enhanced credits, the average monthly premium for Arizonans falls from $523 to $121.
Without the credits, single individuals in their mid-40s making $30,000 would see their premiums increase by $1,350 per year.
Couples in their early 60s earning $80,000 would see their premiums increase by about $13,740 per year.
The bottom line: If the subsidies are not extended, many Arizonans would not be able to afford coverage, especially those with lower incomes and those living in rural areas. Additionally, these coverage losses would translate into spikes in uncompensated care costs for Arizona’s providers.
While Republicans may be wary of the $335 billion cost of extending the subsidies for 10 years, out-of-pocket premiums for their constituents are likely to increase by more than 75% on average if the subsidies expire.
What you can do: Keep discussing the importance of extending these subsidies when you speak to your Representatives and Senators about potential cuts to healthcare funding.
From student to leader: How the Arizona Transition to Practice Program shaped one nurse’s teaching journey
The big picture: TheArizona Transition to Practice Program does not just support new nurses — it also strengthens the preceptors who mentor them.
With leadership development, real-world problem-solving and a focus on workforce retention, the program helps build a stronger, more connected healthcare system across the state.
AzHHA releases DataGen reports
In relationship with DataGen, AzHHA distributes reports to hospitals based on information submitted to the Centers for Medicare and Medicaid Services. DataGen generates hospital-specific reports which are sent to AzHHA hospital members as part of their membership.
Why it matters: This data helps hospitals understand the financial impact of proposed changes and annual updates.
The reports can also assist in preparing budgets or benchmarking results with other similar organizations.
4Q2024 Inpatient Quality Measure Trends (sent Wednesday, April 9, 2025)
4Q2024 Value Based Purchasing Impact Analysis (sent Wednesday, April 16, 2025)
Employee spotlight: Jamie Beauvais
AzHHA’s Jamie Beauvais, central region manager and statewide training and exercise manager for the Arizona Coalition for Healthcare Emergency Response (AzCHER), achieved the Gold Card Qualification in Incident Command.
A Gold Card is issued by the Arizona Department of Emergency and Military Affairs (DEMA).
Why it matters: This status allows Jamie to take an incident command role anywhere in the country, for any agency during a disaster.
This accomplishment requires many hours of training and experience in emergency response.
The big picture: DEMA has developed the Arizona Qualification System program to create a deployable workforce of qualified, certified and credentialed personnel to manage and support incidents of all types and sizes.
Congratulations, Jamie! We’re so proud of this accomplishment and lucky to have you as part of our AzCHER team.
UPCOMING EVENTS
Wednesday, May 14 - Az Community Grand Rounds This webinar will discuss the impacts of heat-related health risks in Arizona, effective mitigation strategies, and how to access and utilize available resources to support members in the community including vulnerable populations. Register here.
Wednesday, May 14 - AHA Workshop: Community health and the environment The workshop will be held in Scottsdale, Ariz. and will bring together frontline hospital leaders in community health strategy, population health and emergency planning to better understand opportunities and challenges related to addressing community health and the environment. Interested in attending? Contact Sean Thorton or Andrew Jager.
Friday, May 16 - Emerging Technology and Tools - What are the Risks? Join the Association for Healthcare Quality of Arizona for this virtual event to explore the latest advancements in digital health, human factors, compliance and emerging technologies. This event features speakers, interactive discussions and practical insights to help you navigate the evolving landscape of healthcare innovation.Learn more and register.
Wednesday, May 28 - Introduction to POLST Join physician orders for life-sustaining treatment (POLST) paradigm for their one-hour virtual workshops equipping healthcare professionals with knowledge and resources to begin using POLST in Arizona. Register here.
May 28-30 - Az HFMA "Rev Up Your Rev Cycle" 2025 Spring Conference Join other healthcare financial experts for an exciting conference in Scottsdale, Ariz. Hear from CFOs, revenue cycle experts, state and federal policy experts, AHCCCS and more. Register today.
