By Jonathan Eberle |
Arizona House Republican leaders are demanding answers after learning that the Chief Medical Officer of the state’s Medicaid program, AHCCCS, has been serving with an expired medical license.
According to records from the Arizona Medical Board, Dr. Theresa Costales, a psychiatrist appointed as Chief Medical Officer in January 2025, failed to renew her license, which was due April 9. The statutory grace period ended on August 9, leaving the license fully expired. Despite this, Dr. Costales continues to advise on state health policies that impact more than 2 million Arizonans.
House Speaker Steve Montenegro called the lapse “a failure of oversight” by Governor Katie Hobbs’ administration. “A lapse like this should never happen in a healthcare agency responsible for millions of people,” he said. “The public deserves accountability when even the most basic standards aren’t met.”
House Majority Leader Michael Carbone echoed the concern, noting that license verification is a simple process. “Any citizen can look this up in minutes. That it slipped through the cracks at the highest level of medical leadership is completely unacceptable.”
House Majority Whip Julie Willoughby, who is also a healthcare professional, questioned whether key policy decisions were made without proper credentials in place. “You cannot have a Chief Medical Officer without an active license—it’s that simple,” she said. She raised particular concern about the recent rollout of the controversial Home and Community-Based Services (HCBS) assessment tool, asking whether decisions tied to the program were made under expired authority.
Republican leaders also pointed to other state agencies, such as the Department of Corrections, that explicitly require valid medical licenses for their top medical positions. They argue AHCCCS should be held to the same standard, given its role in overseeing care for vulnerable populations.
Speaker Pro Tempore Neal Carter said the situation undermines public confidence. “Governor Hobbs’ administration has failed once again to ensure competence and accountability in state government. This isn’t a small oversight—it undermines trust in one of Arizona’s largest healthcare agencies.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
