The House Health and Human Services Committee taking action on key bills.
How a DHS standoff is stalling an HHS funding package as shutdown deadline nears.
Insurer CEOs being grilled on costs, denials and consolidations in dual House hearings.
House Health and Human Services Committee takes action on key bills
Arizona lawmakers returned to full committee schedules in week three.
By the numbers: According to the Legislature’s official tally, this is day 18 of the legislative session, and legislators have introduced 1,466 bills (954 in the House and 512 in the Senate as of Wednesday, Jan. 28, 2026) along with 105 memorials and resolutions.
House Health and Human Services Committee recap: The House Health and Human Services Committee spent nearly six hours on Monday, Jan. 26, 2026 hearing testimony on bills.
Several measures aligned with the majority’s “One Big Beautiful Implementation” package and drew strong opposition from AzHHA and other healthcare advocates.
Action on key bills included:
HB2233Arizona rural health transformation fund - creates a fund to help rural hospitals transition and modernize. The bill was amended with a strike‑everything amendment.
Outcome: Do pass amended (7-5)
HB2251 midwives; medication administration; advisory committee - would broaden midwives’ scope of practice with medication administration and establish an advisory committee.
Outcome: Discussed and held; no vote
HB2252 midwives; ambulances; home births - requires ambulance service protocols.
Outcome: Discussed and held; no vote
HB2689 hospitals; patient immigration status; reporting - requires hospitals that accept Medicaid to add a voluntary question about a patient’s citizenship status to intake forms and compile monthly reports for the Arizona Department of Health Services. The reports may not include names or identifying data.
Outcome: Do pass (7-5)
HB2796 AHCCCS; enrollment verification; presumptive eligibility - directs the Arizona Health Care Cost Containment System (AHCCCS) to verify the eligibility of enrollees and report on the number of people removed from coverage.
Outcome: Do pass (7-5)
Senate Health and Human Services Committee: The Senate committee had 19 bills on its Wednesday agenda, including mirror versions of the House measures. AzHHA registered opposition to:
SB1051hospitals; patient immigration status; reporting(mirror of HB 2689)
SB1236AHCCCS; enrollment verification; presumptive eligibility(mirror of HB2796)
SB1316Arizona rural health transformation fund(mirror of HB2233)
These bills were scheduled for a hearing on Wednesday, Jan. 28, 2026, but at the time this update was prepared, the committee had not yet reported its vote. We will brief members on the outcomes during Friday’s legislative call.
What to watch next week: Committee calendars for the week of Feb. 2 are now posted.
Expect both chambers to have full agendas as we approach the first committee deadline.
Watch for the Senate to take up the mirror bills listed above and for the House House and Human Services Committee to continue hearing healthcare and scope‑of‑practice bills. We will circulate the agenda once it is finalized.
Join our weekly legislative update for members every Friday from 1 to 1:30 p.m. during the session.
DHS standoff stalls HHS funding package as shutdown deadline nears
The House last week passed a bipartisan FY 2026 six-bill spending package that would provide $116.6 billion in discretionary funding for the Department of Health and Human Services (HHS) and extend several key “health extenders.”
These provisions include delaying Medicaid disproportionate share hospital cuts until FY 2028, extending Medicare telehealth flexibilities, renewing Medicare-dependent hospital and low-volume adjustment programs, and continuing hospital-at-home flexibilities.
The health portion of the bill also includes pharmacy benefit manager (PBM) reforms aimed at tighter oversight of PBM business practices and contract terms.
The package does not include an extension of enhanced Affordable Care Act (ACA) premium tax credits or core elements of the Administration’s “Great Healthcare Plan,” such as most-favored-nation drug pricing.
Senate consideration of the bill has stalled amid a dispute over Department of Homeland Security (DHS) funding, with Senate Democrats signaling they will not advance the appropriations package without changes to DHS policy provisions and/or a separate vote on DHS spending.
That standoff raises the risk of a partial shutdown if Congress does not act by 12:01 a.m. ET on Saturday, Jan. 31, 2026.
With the House out until Monday, Feb. 2, 2026, the only viable path this week is for the Senate to pass the package unchanged; any amendments would require the House to vote again.
While a lapse would not shut down the entire federal government, it could still trigger furloughs and operational disruptions at HHS and other agencies covered by the stalled legislation.
Insurer CEOs grilled on costs, denials and consolidation in dual House hearings
Last Thursday, both the House Ways and Means Committee and the House Energy and Commerce Committee held hearings on healthcare affordability, questioning executives from five major insurers: UnitedHealth Group, CVS Health (Aetna), Elevance Health, The Cigna Group and Ascendiun.
Across more than nine hours of testimony, lawmakers pressed the executives on a wide range of issues including claims denials, prior authorizations and industry consolidation.
Members of both parties criticized insurers for high executive compensation and routine denials, delays and barriers to receiving care.
Legislators pressed executives on insurers’ growing ownership of pharmacy benefit managers, pharmacies and physician practices, arguing that it limits competition and drives up costs.
Rep. Alexandria Ocasio-Cortez contended that it has become a bipartisan concern: “Whether you’re a blue-blooded capitalist or a card-carrying democratic socialist, I think corporate monopolies are a problem, and this vertical integration is destroying people’s ability to access care.”
Despite notable bipartisan overlap on concerns about consolidation and healthcare affordability, the hearings also displayed partisan sparring, with members trading accusations over which party’s policies have contributed most to rising costs and coverage instability.
The CEOs directed blame elsewhere for the accelerating costs in healthcare, emphasizing high prices charged by hospitals, physicians and drug manufacturers.
Paul Markovich, the chief executive of Ascendiun (the parent of the nonprofit Blue Shield of California), blamed insurers, providers, pharmaceutical companies and others that “put profits ahead of patients and are complacent about how complex, inconvenient and inefficient our system is.”
The hearings underscored the broad agreement that affordability problems are systemic, and Congress will continue to weigh next steps.
Arizona Transition to Practice Program for New Graduate Registered Nurses starts seventh cohort
By the numbers: Get to know our January 2026 cohort:
👩⚕11 new graduate nurses
👩🏫 11 preceptors
🏥Five facilities participating in cohort seven
The big picture: The Arizona Transition to Practice Program is made possible by funding and support provided by the Arizona Health Care Cost Containment System (AHCCCS) and the Governor’s Office. We are grateful for their backing so that we can tackle this important work.
Register now: 2026 AzCHER Medical Response and Surge Exercise
Join the AzCHER team for the 2026 Medical Response and Surge Exercise (MRSE).
Why it matters: This exercise is designed to enhance your preparedness, foster collaboration and identify and address gaps in your response capabilities.
Who should register?
Acute care hospitals
Behavioral health hospitals
Long-term care facilities
State, tribal and county emergency management and public health departments
Emergency medical services
Transfer centers
Exercises will be held by region:
Central region: 9 a.m. to 2 p.m. on Wednesday, April 1, 2026
Southern region: 9 a.m. to 2 p.m. on Wednesday, April 8, 2026
Northern region: 9 a.m. to 2 p.m. on Tuesday, April 28, 2026
Western region: 9 a.m. to 2 p.m. on Wednesday, April 29, 2026
If you have questions or need more information, please reach out to Central Region Manager Jamie Beauvais.
We’re hiring!
AzHHA is hiring for our next teammate: maternal health program manager.
Why it matters: In this grant-supported role, you’ll help lead Arizona’s maternal health initiatives, support hospitals with AIM implementation, provide clinical education and drive quality improvement efforts statewide.
This position works closely with healthcare partners and supports key data reporting and program management activities.
Served lives: the hidden metric that defines physician access
3Dhealth, an AzHHA affiliated partner, recently published an article that discusses “served lives,” which represents the true number of actual patients a physician or advanced practice provider manages over a defined period of time.
Why it matters: Health system have long measured what’s easy to count - visits, RVUs and headcount.
But access isn’t about how many encounters occur; it’s about how many people receive care.
Served lives reframes the question by measuring access at the level that matters most, patients served per physician, grounded in real productivity, not arbitrary attribution windows.
For questions or more information, please contact Ron Flower at rflower@3Dhealthinc.com. To schedule an appointment with Ron, please contact Annalisa Reese at areese@3Dhealthinc.com.
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.
Wednesday, Feb. 11, 2026 - Overview of Arizona hospital assessments and HEALTHII payments Join us for a 1-hour member’s only webinar for a concise, practical overview of Arizona’s hospital assessments and the HEALTHII payments that are now a major source of hospital reimbursement statewide. We will explain how the assessments work, how funds flow and why they are critical to supporting AHCCCS coverage and provider payments, then turn to major federal changes ahead, including assessment cap reductions under P.L. 119‑21 (the One Big Beautiful Bill) and CMS’s move to embed state‑directed payments into managed care rates beginning in 2027. AzHHA members who did not receive an email and would like to attend may reach out to Donna Di Orio.
Friday, Feb. 13, 2026 - The Hertel Report Winter State of the State This bi-annual conference offers networking and timely insights on Arizona’s healthcare market, including Medicaid, Medicare Advantage, the Affordable Care Act Marketplace, ACOs and commercial trends. Speakers include AzHHA’s SVP of Policy and Advocacy Helena Whitney. AzHHA members can use coupon code AZHHA2026 for $15 off. Register here.
Tuesday, Feb. 17, 2026 - Arizona Rural and Public Health Policy Forum Join the 2026 Policy Forum for in-depth discussions on pressing rural and public health policy issues and their impact on communities statewide. This year’s forum will feature insights into legislative priorities for the upcoming session and conclude with a special networking reception. Learn more and register.
Save the Date: 2026 Arizona Hospital Leadership Conference Mark your calendar for the AzHHA Foundation’s 2026 Arizona Hospital Leadership Conference, taking place Oct. 21–23 at the El Conquistador Tucson, a Hilton Resort. This annual gathering brings together hospital and healthcare leaders from across the state for engaging discussions, networking and forward‑focused learning. Additional details, registration information and sponsorship opportunities will be shared in the coming months. Questions may be directed to communications@azhha.org.
