Arizona and the broader U.S. are facing staggering healthcare workforce shortages. According to the Health Resources & Services Administration's National Center for Health Workforce Analysis, the nation will be short of more than 70,000 primary care clinicians — including physicians and physician assistants — by 2038.

The situation is especially dire in Arizona, where the gap between supply and demand is projected to be a 43% deficit — the highest in the country. Despite this highly concerning statistic, graduate medical education funding — which is a necessary investment in our state's workforce — is at risk of being swept in Arizona's fiscal year 2027 budget.

The Arizona Medical Association is asking for your help. Join us in telling legislators that GME funding is a necessity healthcare can't go without. Learn more below and send a pre-drafted, customizable letter in under 5 minutes.

The Fiscal Reality in Arizona

Physicians Know: GME Funding is Vital

Arizona's physician community has long advocated for state-funded investments in GME, which plays a critical role in sustaining and strengthening Arizona's healthcare system. We've educated lawmakers on how funding for local residency programs enhances physician training, expands access to patient care, and helps ensure our healthcare system can meet the needs of our communities.

For these reasons, ArMA and our allied stakeholders successfully championed legislation that secured $4 million in federally-matched GME funding in 2025. While this and other funding have already been distributed among programs, any unspent allocation is still at risk of being swept in the FY2027 budget.

The Need for GME Funding Has Never Been Greater

With a nearly 50% projected shortfall in primary care clinicians, Arizona's healthcare is at-risk.

GME funding is one of the most effective and evidence-based tools the state has for addressing our serious healthcare workforce gaps. Evidence consistently shows that physicians are more likely to practice medicine in the state where they complete their residency training.

Maintaining robust GME support is essential not only for today's healthcare delivery but for building a stable and adequate physician workforce to address the future needs of our growing communities.

🚨 Here's How to Take Action

ArMA stands ready to collaborate with lawmakers on responsible, durable solutions — and we're asking physicians and advocates to make their voices heard. You can help by sending a pre-drafted letter to your state legislators, which takes less than 3 minutes.

Tell your elected officials that GME funding is not a luxury. Send our pre-drafted and customizable letter now.

An emerging debate at the Arizona Capitol over federal "defrayal" rules could have significant implications for state-mandated insurance benefits — and for patient access to care. Arizona physicians should be tracking this issue closely.

What the Defrayal Rule Requires

Under the Affordable Care Act, if Arizona requires insurers in the individual or small-group market to cover benefits that exceed the state's Essential Health Benefits benchmark plan, the state may be required to reimburse the insurer or the federal government for the associated costs. These rules take effect January 1, 2028.

Why It Matters This Session

The rule is drawing increased scrutiny this legislative session as lawmakers weigh proposals to expand coverage in several areas, including:

• Behavioral health services
  
• Fertility treatment
  
• Autism care
  
• Other expanded benefits

Many of these mandates have received ArMA's support in prior sessions.

What It Means for Physicians and Patients

Beyond insurance regulation, the defrayal rule carries real-world consequences for physicians and patients alike — potentially affecting access to emerging therapies and specialty services, and influencing how quickly new standards of care are incorporated into commercial coverage requirements.

As the debate continues, ArMA's Advocacy Team will keep you updated.

The Arizona Senate has approved legislation aimed at tightening oversight of vape and e-cigarette products, marking an initial step toward a more structured regulatory framework for alternative nicotine products. The bill passed with broad bipartisan support.

What the Bill Would Do

If enacted, the measure would:

• Establish licensing requirements for manufacturers and distributors
  
• Shift enforcement authority to the Arizona Department of Liquor Licenses and Control
  
• Create a tiered penalty system for violations involving sales to individuals under age 21

Where There Is Pushback

Despite bipartisan backing in the Senate, some lawmakers and public health advocates say the bill does not go far enough — particularly on retail licensing and enforcement mechanisms. Others have raised questions about whether placing vape oversight within the liquor regulatory structure is the right fit for a rapidly evolving product category.

What Comes Next

The bill still must clear the full House of Representatives, where it faces less bipartisan support, before heading to Governor Katie Hobbs for a signature.

Arizona Governor Katie Hobbs has kicked off her re-election bid with a multimillion-dollar advertising push, signaling an early and aggressive start to what is expected to be one of the most closely watched gubernatorial races in the country.

What the Ads Say

The television, radio, and digital campaign highlights Hobbs' working-class background — including stints in fast food, driving for Uber, and working as a social worker before entering public office. The ads also emphasize her policy agenda focused on lowering costs for Arizona families, including housing, utilities, and prescription drugs.

The Political Landscape

Hobbs' team says the campaign is designed to reinforce her commitment to working families and bipartisan solutions. Republicans, however, are pushing back — questioning her record on inflation, housing, and state spending.

Why Arizona Is in the Spotlight

Arizona lawmakers are closing in on a state budget agreement for fiscal year 2027, but most negotiations remain out of public view as legislative leaders and Governor Katie Hobbs' office work through several unresolved issues.

Where Talks Stand

The House has yet to reconvene, and the Senate has held only limited floor sessions — moving a small number of bills while budget discussions continue privately. Attendance challenges among lawmakers have further complicated scheduling and slowed progress.

Key Sticking Points

Negotiations center on two main issues:

• Federal tax conformity: Republican lawmakers are prioritizing measures tied to last year's House Resolution 1.
  
• Implementation funding: The governor's office is pushing for additional dollars to cover implementation costs tied to federal tax conformity provisions.

What to Expect Next

Capitol observers say a deal could surface as early as next week, though many now expect final action the week after as talks continue.

The Centers for Medicare & Medicaid Services has announced a six-month nationwide moratorium on new Medicare enrollments for hospice agencies and home health agencies. CMS cited fraud, waste, and abuse concerns in sectors it has identified as high risk for improper billing and enrollment activity.

Who Is — and Isn't — Affected

The moratorium applies to new Medicare enrollments and certain changes in majority ownership. Agencies already enrolled in Medicare may continue operations and billing without interruption during the pause. CMS said the moratorium will allow the agency to strengthen oversight, conduct targeted investigations, and expand data analytics to identify potentially fraudulent activity.

Why CMS Is Acting Now

Hospice and home health services have drawn increased federal scrutiny in recent years due to patterns of suspected fraudulent billing, inappropriate patient enrollment, and questions about care quality. Enforcement actions have already included payment suspensions, enrollment revocations, and enhanced audits in select regions.

What This Means for Physicians

For physicians, the moratorium could affect referral networks, discharge planning, and continuity of post-acute care — particularly in areas with limited hospice or home health capacity. Clinicians working with existing Medicare-certified agencies are not expected to see immediate changes to patient eligibility, documentation, or billing requirements. However, expanded auditing and compliance activity across the sector is likely as scrutiny of utilization patterns increases.

Source: Centers for Medicare & Medicaid Services.

Standoff Continues as Fiscal Deadline Looms

Arizona's fiscal year 2027 budget remains unresolved, with lawmakers on an extended recess until June 1 and no deal in sight. Governor Katie Hobbs and Republican legislative leaders have each accused the other of blocking compromise as the June 30 fiscal deadline approaches.

What Republicans Are Proposing

GOP leaders advanced a budget package this month centered on tax relief, border security funding, and limits on new state spending. Republicans argue the plan reflects voter concerns about inflation and government growth, and that Arizona should maintain fiscal restraint even as state revenues remain relatively strong.

Where Democrats and the Governor Draw the Line

Hobbs vetoed the initial Republican budget, calling it inadequate on public education, affordable housing, and social services. Her office has called for a bipartisan agreement that protects long-term investments without deep cuts to core programs.

Key Sticking Points

Several issues remain unresolved heading into the next round of negotiations:

• Education funding — a central dispute between the two sides
  
• Water infrastructure and transportation spending
  
• The size of the state's rainy day reserve
  
• Border-related funding — a Republican priority
  
• Child care and housing investments — a Democratic priority

What Happens Next

Despite sharp public rhetoric, negotiators from both parties continued private discussions this week. Legislative leaders have indicated additional budget drafts could emerge soon, though significant differences remain. Both sides have said they want to avoid a government shutdown before the end of the fiscal year.

Members of the Arizona Medical Association interested in joining the lawsuit as litigants are eligible for discounted contingency fees. If you believe you've been impacted by MultiPlan's practices, you are encouraged to reach out to an attorney. 

For more information, read our recent press release.

A former Arizona lawmaker is returning to the state Capitol after being selected to fill a vacancy in Legislative District 7.

How the Vacancy Came About

The Navajo County Board of Supervisors appointed Sylvia Allen, a Republican and former state senator, to replace Rep. David Marshall, who resigned his Arizona House seat in April to become the county's recorder.

Allen's Background and What Comes Next

Allen, who previously served in the Legislature for several years and chaired the Senate Education Committee, was sworn in Wednesday. She will represent the largely rural district through the remainder of the term, which ends in January.

In her remarks at the Capitol, Allen said she was eager to return to public service and represent rural Arizona, calling it a place she deeply values.

The Arizona House passed a fiscal year 2027 budget along partisan lines this week, spending roughly $800 million less than Gov. Hobbs' January proposal.

How the Budget Pays for Tax Cuts

The nearly $18 billion proposal fully conforms with H.R. 1 tax policy, funding those cuts primarily through a 5% reduction to nearly all state agencies — excluding the Department of Public Safety, Department of Corrections, and Department of Child Safety. Additional savings come from:

• $100 million in "government efficiencies" through streamlining and AI implementation
  
• $86 million in cuts to the Commerce Authority and Tucson's Rio Nuevo
  
• $76 million by eliminating solar tax credits and incentives
  
• Various other clawbacks

What's Not Included

The proposal does not include any "member funding asks" — typically the vehicle for targeted investments such as infrastructure and healthcare. It also does not address renewing Proposition 123, which funds public education through the state land trust.

Healthcare Provisions in the FY2027 Budget

For healthcare, the budget would:

• Claw back last year's graduate medical education (GME) appropriation
  
• Require the state to request a waiver from the Centers for Medicare & Medicaid Services (CMS) to limit Hospital Presumptive Eligibility to children and pregnant women
  
• Implement eligibility checks for the Arizona Health Care Cost Containment System (AHCCCS)
  
• Expand work requirements for the Supplemental Nutrition Assistance Program (SNAP)

What Happens Next

Gov. Hobbs has not publicly indicated how she would respond if this budget reached her desk, though signing it appears highly unlikely. House Speaker Steve Montenegro said the House is prepared to continue negotiations, while her press aide indicated the governor's office is still reviewing the proposal.

Governor Katie Hobbs announced this week that she will veto all bills that land on her desk until legislative Republicans release a budget plan for FY2027.

Hobbs: No Budget Proposal, No Bills

"The legislative majority needs to put forward their budget proposal and then join me at the negotiating table so we can pass a bipartisan, balanced budget just like we've done the past three years. But until the legislative majority shows us their plans for a balanced budget that works for middle-class Arizonans, their bills will be dead on arrival," Hobbs said in a statement.

K-12 Funding and Prop 123 Emerge as Key Sticking Points

Funding for K-12 education remains one of the stickiest dilemmas, with Governor Hobbs and legislative Democrats pushing for an extension of Prop 123, which allows the state to use state land trust funds to support public schools. The 2016 ballot proposition expired last year but was backfilled in the FY2026 budget. However, with increased pressure from tax conformity and financial obligations for AHCCCS and SNAP from H.R. 1, backfilling with state General Fund dollars is not as viable.

Republicans Signal Prop 123 Deal Is Dead

Legislative Republicans have indicated that the odds of finalizing a deal on Prop 123 in the budget are almost zero. "We do not think that's a responsible play. We're talking about a $300 million question mark that will have to be resolved at the ballot," said House Appropriations Vice Chair Matt Gress.

Arizona's Finance Advisory Committee, a panel of public and private sector economists that advise the Legislature, met Thursday to present the latest expert analysis on the Arizona and U.S. economic outlook.

April Forecast Cuts Available Resources by $199 Million

Arizona's budget outlook has weakened since earlier projections, with the April forecast showing state General Fund revenues falling below the January baseline. Previously, the January estimate projected $577 million in available resources, but the updated April figure reduces that amount to $378 million, tightening fiscal flexibility. Under either scenario, the state is expected to face ongoing challenges in addressing major budget priorities.

National Economy Offers Mixed Signals

National economic conditions provide a mixed backdrop: while the U.S. economy remains resilient and the job market is stable, overall growth is expected to slow. Inflation has declined from its mid-2022 peak but still remains above the Federal Reserve's 2% target.

Consumer Sentiment Remains Low

At the same time, consumer sentiment remains low, driven largely by worries over increasing food and energy costs and geopolitical uncertainty.

An Arizona state representative has triggered a formal legal review process over a City of Phoenix policy governing federal immigration enforcement access to city-owned property.

The policy limits when federal agencies like Immigration and Customs Enforcement (ICE) can use Phoenix city-owned property. In most cases, federal officers must first obtain approval from the city manager before using those facilities for activities such as staging operations or processing detainees. City leaders say the measure is intended to increase oversight and clarify how local resources are used.

Arizona Rep. Quang Nguyen has requested a "1487" investigation from Arizona Attorney General Kris Mayes to determine whether the Phoenix ICE policy violates Arizona law. He argues that restricting access to city property could interfere with the enforcement of federal immigration laws, which state law says local governments cannot limit. Nguyen's request triggers a formal review process. If the Arizona AG's Office determines the policy conflicts with state law, the city could face financial penalties unless the policy is repealed.

City officials, however, maintain that the policy is lawful. They say municipalities have the authority to control how their property is used and emphasize that the measure does not prevent federal enforcement, but instead sets conditions for the use of local facilities.

The dispute highlights an ongoing tension between Arizona state law, local governance, and federal immigration enforcement, with the final determination now resting with AG Mayes' office.

The Maricopa County Board of Supervisors appointed Cody Reim to fill a vacant seat in the Arizona House of Representatives for Legislative District 3 and he was sworn in just a few days later. The vacancy followed the resignation of former Arizona Representative Joseph Chaplik, who stepped down to pursue the open seat in Congressional District 1.

Reim, a small business owner from Rio Verde Foothills, was selected unanimously from a list of three candidates nominated by local party officials, in accordance with Arizona law. He will serve through the remainder of the current term, with the Legislative District 3 seat scheduled to appear on the ballot in the 2026 Arizona general election.

Supporters of the appointment highlighted Reim's community involvement, particularly his advocacy on local water issues — an ongoing concern for residents in parts of northeast Maricopa County. Reim has said he plans to focus on representing constituents' concerns and contributing to long-term solutions at the state level.

Arizona’s 57th State Legislature has officially completed committee work for its second regular session. The last two weeks saw long committee agendas, late nights, and tense discussions as lawmakers fought to get their bills heard. Though the end of committee hearings signals a significant shift at the Capitol, it doesn't necessarily mean an end to the session is near.

Pharmacists' Test-and-Treat Bill Makes a Surprise Appearance

Committees' final push included a surprise strike-everything amendment for pharmacists’ attempted scope expansion, which would allow them to prescribe for flu, strep, COVID, and HIV PrEP. Although the striker narrowly passed out of the House Appropriations Committee with a 10-7 vote, the proponents have a difficult path ahead thanks to the dedication of ArMA’s physician advocates.

Nearly 650 emails have already been sent to the House of Representatives sharing physician’s concerns with the proposal. The fight is not over, however, and you can still help defeat this mis-guided legislation and the negative impacts it would have on patient outcomes.

All Eyes on the Floor & the Budget

With committees over, the focus will now shift to floor action, where bills are considered by the full chambers before being transmitted to Governor Katie Hobbs for a signature or veto.

If the legislature were on track to adjourn by its 100-day goal, then we would certainly be seeing more promising budget conversations happening. Unfortunately, ArMA's Advocacy Team doesn’t have promising news or rumors to share on state budget negotiations. Generally, once committee business wraps up, lawmakers shift their attention to passing a budget, but it seems that there are few meaningful conversations happening.

As a reminder, they must pass a budget before July 1 to prevent a state government shut-down. While this date seems far away, the last sessions have labored on almost that long.

A key commercial insurance reform championed by the Arizona Medical Association is gaining momentum at the Arizona State Capitol — and enactment looks promising.

SB1628: Claims Denial and Prior Authorization Reporting

Senate Bill 1628 (claims denial; prior authorization; reporting) — which would require insurers to report data on medical claims and prior authorization denials — is scheduled for a hearing in the House Health & Human Services Committee on Monday.

The bill would require insurers to report key data to the Arizona Department of Insurance and Financial Institutions. DIFI would then be charged with publishing an annual, publicly available report, which it would also disseminate to key legislative leadership. By arming advocates with vital, concrete data, the bill would pave the way for future insurer reforms to improve the practice of medicine and patient care.

While nothing is guaranteed at the State Capitol, ArMA's Advocacy Team is optimistic about the bill's path forward and will keep you updated on its progress.

ArMA and AzHHA: A United Front

ArMA and the Arizona Hospital and Healthcare Association have partnered to advance reforms designed to level the playing field between physicians and insurers, ultimately improving health care for Arizona patients.

Governor Katie Hobbs has vetoed legislation that would have required Arizona hospitals to ask patients about their immigration or citizenship status, halting a measure that sparked intense debate among lawmakers, healthcare providers, and immigrant advocates.

What the Bill Would Have Required

The proposal would have required hospitals that receive funding through the Arizona Health Care Cost Containment System (AHCCCS) to ask patients whether they are U.S. citizens or otherwise lawfully present in the country. Supporters said the information would help the state better understand how much healthcare is provided to undocumented immigrants.

Lawmakers who backed the bill said the intent was not to deny care but to gather data about the cost of treating undocumented immigrants in Arizona hospitals. They argued the state should have clearer information as it debates healthcare spending and border-related issues.

Why Hobbs Vetoed the Measure

In her veto message, Hobbs said the bill risked discouraging patients from seeking necessary medical care and could undermine public health. She argued that requiring hospitals to collect immigration data could create fear among patients and interfere with care in emergency situations.

The veto marks the latest clash between Hobbs, a Democrat, and the Republican-controlled Arizona State Legislature over immigration-related policies. With the veto, the measure will not take effect.

Representative Joseph Chaplik of Legislative District 3, which covers parts of Scottsdale and Fountain Hills, announced he will resign his legislative seat to focus on his campaign for Congressional District 1. Chaplik announced his intention to run for the open seat in December.

Following his resignation, the LD3 Republican Party will nominate three candidates, from which the Maricopa County Board of Supervisors will choose one individual to serve the remainder of the term.

Governor Katie Hobbs this week unveiled a broad ethics and transparency reform package aimed at strengthening oversight of government contracting, campaign finance, and interactions with lobbyists amid ongoing scrutiny over "pay-to-play" concerns.

Her plan would create a searchable state contractor database, limit campaign contributions from potential bidders during active procurement, and ban lobbyist gifts to officials.

Sen. TJ Shope is championing a competing disclosure proposal — identical to a bill the governor vetoed last year. Shope's bill would require companies and their leadership to disclose financial support to a governor's campaign or political group when bidding on state contracts.

Discussions are underway as the Legislature considers how to move forward with legislation that addresses concerns from both sides.

Read more from the Office of the Governor.

The U.S. Department of Health and Human Services' Office for Civil Rights has opened an investigation into the Arizona Department of Health Services following a complaint alleging potential violations of federal and state religious freedom protections.

The complaint, filed by the Center for Arizona Policy, asserts that certain faith-based behavioral health providers were pressured by state licensing officials to provide or facilitate gender-affirming and abortion-related services for minors — or risk losing their licenses and Medicaid reimbursement eligibility.

Federal investigators are examining whether state officials misapplied licensing standards in a way that conflicts with established religious exercise protections. The Arizona Department of Health Services has stated it is cooperating fully and seeking clarification regarding the specific allegations.

Read more from Arizona Central.

Arizona's 2026 Legislative Session is in full swing, with key Arizona Medical Association priorities already advancing through the process.

Prior Authorization Reform Bill Passes Committee

On Monday, Feb. 2, ArMA-initiated House Bill 2194 (claims; prior authorizations; denials; contact), which will require insurers to provide a point of contact and comprehensive explanation with denials, passed out of the Health Committee with unanimous support.

ArMA Opposes Naturopathic IV Antibiotic Expansion

On Wednesday, Feb. 4, ArMA testified in opposition to a dangerous proposal that would allow naturopaths to utilize IV antibiotics. Although the bill passed along partisan lines, there are many more opportunities to stop it before it becomes law. If you haven't yet done so, sign in opposed on Request to Speak* and send an email to the Arizona Senate detailing your concerns.

*Need guidance on how to use the Capitol's Request to Speak platform? Click here.

Licensed Midwife Legislation Under Negotiation

Negotiations are ongoing over legislation pushed by licensed midwives to increase oversight and regulation, as well as allow for some expanded prescriptive authority. After extensive testimony, the bill, House Bill 2251, was held in committee with a commitment from the sponsor to work with stakeholders on finding common ground.

Upcoming Legislation: Be Ready!

Next week will be a busy one, with ArMA-initiated House Bill 2617 (insurance; prostate cancer; cost sharing) being heard on Monday. Notably, ArMA opposed legislation expanding pharmacists' scope to allow them to "test and treat" for flu, strep, COVID, and HIV PrEP. There is still a chance for it to be heard on Feb. 16, so please stay tuned for advocacy updates.

View ArMA's Full 2026 Legislative Agenda

These bills represent just a portion of ArMA's advocacy work this session. For a comprehensive overview of our key priorities and legislative positions, view our full 2026 Legislative Agenda on LinkedIn.

Former Arizona Republican Party chair Gina Swoboda, who had previously launched a 2026 campaign for Arizona's 1st Congressional District, is now exploring a run for secretary of state, according to recent filings.

Swoboda, who received an early endorsement from former President Donald Trump, filed a statement of interest this week indicating her intent to pursue the GOP nomination for secretary of state instead of Congress. That step does not officially place her on the ballot yet but signals a pivot in her campaign plans.

Impact on Competitive Congressional Race

Her potential shift out of the congressional contest reshapes a competitive and closely watched race, which includes parts of Scottsdale, Fountain Hills, and northeast Phoenix. This district is considered one of the country's most competitive and could even influence control of the U.S. House next year.

Democratic Frontrunner

Amish Shah, MD, a former state legislator, ED physician, and the Democratic Party's 2024 nominee, is again seeking the Democratic nomination. Shah narrowly lost to incumbent Republican David Schweikert in 2024 and remains the leading Democratic contender for the open seat.

Remaining GOP Contenders

With Swoboda likely stepping back from the congressional race, Republicans will consolidate support around the other GOP contenders: former Arizona Cardinals kicker Jay Feely and state Rep. Joseph Chaplik.

The coming weeks will be important for both parties as candidates finalize their paths to the August primary and set the stage for a general election that national strategists view as pivotal.