Skip navigation

AHCCCS at risk: Federal legislation threatens Arizona’s healthcare system

AzHHA urges action to protect patients, providers and rural hospitals statewide.

PHOENIX, ARIZ. — Today marks a serious setback for Arizona’s Medicaid program, AHCCCS, and the hospitals and healthcare providers that serve our state. With the passage of H.R.1 (The One Big Beautiful Bill Act), Congress has approved sweeping cuts to Medicaid, jeopardizing care for millions of Americans, including hundreds of thousands in Arizona.

Despite national recognition of AHCCCS as a model program for cost-effective, quality care, this legislation strips Arizona of key tools we’ve used to serve a diverse and often vulnerable population, especially in rural areas.

The Arizona Hospital and Healthcare Association (AzHHA) supports targeted reforms, including work requirements and measures to reduce waste, fraud, and abuse. But within reason.

“This bill goes too far,” said Ann-Marie Alameddin, president and CEO of AzHHA. “It removes Arizona’s flexibility, forces new fiscal burdens on our state and risks dismantling a system voters and lawmakers have repeatedly endorsed.”

We are deeply concerned about the ripple effects on patients, providers and entire communities, especially veterans, children and low-income workers. We need to be clear, the impacts will be felt by every single person in Arizona, not just those who are on AHCCCS. More than 55% of Arizona hospitals could operate in the red. Access to services like obstetrics and behavioral health is at risk.

AzHHA will continue to work with our hospital members, the Arizona Legislature, and we are here to work with our congressional delegation to address these impacts. We urge federal leaders to stay engaged and stand ready to assist the Arizonans who will soon feel the very real effects of this legislation.

# # #

About the Arizona Hospital and Healthcare Association

AzHHA is the association giving Arizona hospitals a voice to collectively build better healthcare and health for Arizonans. As the champion for healthcare leadership in Arizona, AzHHA and its member hospitals explore ideas and take collaborative action at the state capitol, in hospitals and at home to attain the best healthcare outcomes for our community. Above all else, we put people and patients first through Better Care, Better Health and Lower Costs. Visit https://www.azhha.org for more information.