House Republicans Raise Concerns Over AHCCCS Chief Medical Officer’s Expired License

House Republicans Raise Concerns Over AHCCCS Chief Medical Officer’s Expired License

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.

Arizona Senate President Urges Federal Lawmakers To End Shutdown

Arizona Senate President Urges Federal Lawmakers To End Shutdown

By Jonathan Eberle |

Arizona Senate President Warren Petersen is pressing the state’s U.S. Senators, Mark Kelly and Ruben Gallego, to support measures to reopen the federal government, saying the ongoing shutdown is causing widespread harm to residents and the state’s economy.

Petersen criticized the two Democratic senators for what he described as “playing politics” and siding with “the left fringe” instead of joining a bipartisan coalition to keep the government funded. According to Petersen, both Kelly and Gallego opposed a stopgap spending bill that would have temporarily extended funding and avoided a lapse in government operations.

“This shutdown is not about helping Arizonans — it’s about defending unpopular priorities,” Petersen said. “Kelly and Gallego need to stop bowing to the radical left, put Arizona families first, and vote to reopen the government immediately.”

The shutdown, now stretching into its second week, has left thousands of Arizona residents facing financial uncertainty. State Republicans estimate that Arizona’s gross state product is losing about $296 million per week due to the disruption. Other reported impacts include:

  • Roughly 58,000 federal employees in Arizona either furloughed or working without pay.
  • Delayed Social Security benefits for seniors and others relying on timely checks.
  • Frozen loan distributions from the Small Business Administration.
  • Closures of national parks, including the Grand Canyon, straining tourism-dependent communities.

Petersen also warned that the shutdown is hitting families, small businesses, and retirees especially hard, compounding an already challenging economic environment. For now, Petersen said he will continue to urge Arizona’s federal delegation to prioritize ending the impasse. “This is about more than numbers on a spreadsheet. Real people are hurting, and every day the shutdown continues, that harm grows deeper,” he said.

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.

Sen. Werner Demands Accountability From AHCCCS After Revelations Of Billions In Estimated Fraud

Sen. Werner Demands Accountability From AHCCCS After Revelations Of Billions In Estimated Fraud

By Jonathan Eberle |

State Senator Carine Werner is escalating her oversight push against Arizona’s Medicaid agency, AHCCCS, after a tense committee hearing revealed what she called “catastrophic failures” in the state’s health care system.

As chair of the Senate Health and Human Services Committee, Werner convened an October 1 hearing that uncovered widespread fraud, lapses in oversight, and significant coverage disruptions for vulnerable Arizonans. Lawmakers heard testimony that outlined nearly $2.8 billion in estimated fraud, more than 140,000 unenrollments since September 2024, and deep impacts on Native American communities.

“This is about far more than numbers on a page—it’s about lives shattered and trust broken,” Werner said after the hearing. “Families lost coverage, providers were driven out by retaliation and red tape, and patient brokers were allowed to exploit Arizonans in need. We cannot allow the Governor’s state agencies to hide behind vague answers.”

Witnesses described fraudulent brokers shifting patients from Medicaid into federally subsidized marketplace plans, leaving families at risk of losing access to necessary care. Providers also reported delayed or denied payments that have forced some to close their practices, while law enforcement confirmed that just 91 arrests have been made despite widespread patient brokering schemes.

The committee also heard that Native American communities have been disproportionately affected by lapses in Medicaid coverage, with families struggling to find replacement providers or navigate bureaucratic hurdles.

In response, the committee issued a formal list of follow-up questions to AHCCCS. Lawmakers are seeking precise information on how many licensed behavioral health providers are actively serving patients, what actions are being taken to restore access to care in Native American communities, how much taxpayer money has been lost and recovered, and whether AHCCCS has held staff accountable for oversight failures.

Werner stressed that the requests are non-negotiable. “Governor Hobbs and AHCCCS owe Arizona’s taxpayers and families straight answers. The days of vague promises are over. This committee expects deliverables that prove action is being taken.”

The committee has given AHCCCS 30 days to provide a full set of responses and supporting data. A follow-up hearing is scheduled within 45 days, where lawmakers will publicly review the agency’s progress.

“Arizona deserves a health care system that protects the vulnerable instead of enabling fraud,” Werner said. “We will keep pressing until every loophole is closed, every fraudulent actor is held accountable, and every Arizonan can access care without fear of exploitation.”

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.

Nguyen Honored As Legislator Of The Year At National Gun Rights Conference

Nguyen Honored As Legislator Of The Year At National Gun Rights Conference

By Jonathan Eberle |

Arizona State Representative Quang Nguyen (R-LD1), Chairman of the House Judiciary Committee, was recognized as Legislator of the Year on Saturday at the 40th annual Gun Rights Policy Conference (GRPC) in Salt Lake City. The award highlights Nguyen’s role in advocating for Second Amendment protections at both the state and national levels. The GRPC, founded by Alan Gottlieb of the Second Amendment Foundation (SAF), brings together legal scholars, public officials, authors, and activists to address firearms policy and constitutional rights. Each year, SAF honors individuals who have made significant contributions to defending the right to keep and bear arms.

Gottlieb praised Nguyen during the ceremony, saying, “I have rarely encountered a public servant as principled and tireless as Representative Quang Nguyen of Arizona. Since his first day in office, Representative Nguyen has stood as a stalwart voice for your rights and mine, not just voting the right way, but leading from the front, shaping the debate, and holding the line against those who would erode our freedoms incrementally.”

Nguyen was joined at the conference by Arizona House Speaker Steve Montenegro and Representative Nick Kupper. Montenegro participated in a “Fireside Chat” moderated by Armed America Radio host Mark Walters, highlighting Arizona House Republicans’ record on gun rights.

In accepting the award, Nguyen emphasized his commitment to constitutional protections: “It is an incredible honor to be recognized by the Second Amendment Foundation as Legislator of the Year. I will always defend the Constitution as written and protect Arizonans’ right to self-defense. I am grateful to Speaker Montenegro and Representative Kupper for standing with me in defense of the Second Amendment. House Republicans will continue to lead Arizona in the fight to preserve our rights.”

The 2025 conference featured dozens of speakers addressing issues surrounding firearms law, policy, and the future of the Second Amendment.

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.

Horne Warns Of ‘Catastrophic’ Absenteeism In Arizona High Schools

Horne Warns Of ‘Catastrophic’ Absenteeism In Arizona High Schools

By Jonathan Eberle |

State Superintendent of Public Instruction Tom Horne is sounding the alarm over what he describes as “catastrophic” levels of chronic absenteeism among Arizona high school students, citing a new report from the Helios Foundation. The Helios report defines chronic absenteeism as missing nine days in a semester or 18 days in a school year. According to the findings, 28.1 percent of Arizona students in grades 1–8 are chronically absent. That number climbs to 37 percent among high school students.

“This is catastrophic. We cannot teach students who are not in school,” Horne said. “The high school student who misses more than one third of his classes is facing a bleak future.”

Horne highlighted the Dysart Unified School District in the Phoenix area as a standout example of combating the problem. Dysart has significantly lower absenteeism rates—9 percent in grades 1–8 and 8.69 percent in grades 9–12—compared to state averages.

According to Horne, Dysart enforces strict accountability measures: students in grades 1–8 who miss 18 days in a year must repeat the grade, while high school students who miss more than nine days in a semester cannot receive credit for their courses.

“They got there because they held students and parents accountable,” Horne said. “The Dysart method is successful and makes sense. It is what schools mostly did in the past before our culture got so much more permissive. Academic loss is the price we have paid for that permissiveness.”

Horne also pointed to the role of parents in ensuring daily attendance. He said the pandemic shifted some attitudes, with parents viewing absences as less serious than before. He argued that once parents understand the direct link between absenteeism and on-time graduation, they become more engaged.

“As a former member of a school board for 24 years, I can testify that it is very important to parents that their children graduate on time,” Horne said. “The data show the Dysart method is the most effective way to reduce chronic absenteeism.”

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.