Arizona Medicaid Agency Prepares to Implement HR1 Eligibility Changes

October 2, 2026

AHCCCS Prepares Arizonans for New Eligibility and Engagement Requirements Under Federal Spending Package


A New Resource for Affected Members


The Arizona Health Care Cost Containment System, Arizona's Medicaid agency, has launched a statewide education effort to help Medicaid members prepare for new eligibility requirements and federal work and community-engagement requirements that take effect in January 2027.


The agency and community partners launched KeepMyAHCCCS.com in September as a central resource on the changes, which are expected to affect nearly 417,000 members. Under the federal law, certain adults enrolled through the Medicaid expansion will generally need to work, attend school, volunteer, or participate in another qualifying activity for at least 80 hours per month to maintain coverage, unless they meet certain criteria.


Humanitarian Immigrant Eligibility Restrictions Began Oct. 1


The first HR1 coverage changes took effect Oct. 1, when new federal eligibility restrictions for certain lawfully present immigrants began. Refugees, asylees, and several other humanitarian immigrant groups who previously qualified for full AHCCCS coverage will no longer be eligible for federally funded Medicaid coverage and generally will qualify only for emergency services coverage.


Lawful permanent residents, certain Cuban and Haitian entrants, and citizens of Compact of Free Association nations remain eligible if they otherwise meet AHCCCS requirements. AHCCCS has been notifying affected members, and the change could put more than 22,000 Arizona refugees at risk of losing their health coverage.


What This Means for Physicians


For physicians, the change could mean patients with ongoing medical needs — including those requiring medications, specialist care, and chronic-disease management — lose coverage even though they remain legally present in the United States, potentially creating gaps in care and increased uncompensated care.


Work Requirements Begin January 2027


Beginning in January 2027, the new requirements will apply primarily to adults ages 19 to 64 who enrolled through Medicaid expansion. Numerous exemptions apply, including for parents and caregivers of dependent children, people with disabilities or certain medical conditions, students, and other groups.


AHCCCS says members will receive information about whether the requirements apply to them and how to document qualifying activities or exemptions. Certain Medicaid expansion adults will also be required to complete eligibility renewals every six months rather than annually, and the federal changes will reduce the amount of retroactive coverage available to certain Medicaid expansion adults.


What's Next

AHCCCS says additional guidance and resources will be provided as the January 2027 implementation date approaches.


Source: Arizona Health Care Cost Containment System (AHCCCS). Additional information available at KeepMyAHCCCS.com.


By Admin User • October 2, 2026
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By Admin User • October 2, 2026
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