by Jonathan Eberle | Oct 10, 2025 | News
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.
by Staff Reporter | Oct 3, 2025 | News
By Staff Reporter |
Republican lawmakers pushed for reforms to the state’s disability assessment policies before they took effect this week.
House Majority Whip Julie Willoughby and State Senator Janae Shamp issued a press release on Tuesday raising concerns about the reasonableness and evidence basis for the latest assessment policies from the Arizona Department of Economic Security (DES) and Arizona Health Care Cost Containment System (AHCCCS).
Per Willoughby and Shamp, coalitions of parents, advocates, and direct care workers reported having little opportunity for meaningful discussion or improvement regarding the new assessment policies, which they described as “extreme and unsustainable.”
Stakeholders allege the new assessment model from DES and AHCCCS will cause bigger burdens for everyone across the board: families, health care providers, and the state. As one example, they argue against the shift of habilitation services to an age basis instead of a skill basis, citing the long-term costs and setbacks from late intervention.
“Lives are at stake, and we must act now to ensure our disability support system functions for the best possible outcomes,” said Shamp.
The main source of contention concerns rollbacks to a program that paid families to be caregivers to their own children with special needs, the Parents as Paid Caregiver (PPCG) service model. Under the policy changes, children under 10 years old won’t qualify for state-backed attendant care. The changes also implement age limits on habilitation.
“We are urging DES and AHCCCS to pause these harmful changes and sit down with families and providers to develop an approach that works,” said Willoughby and Shamp in a joint statement. “Creating this tool is a huge responsibility, and we need people at the table who have real-life experiences and expertise to ensure the best possible outcomes for our people.”
DES and AHCCCS hosted two public forums earlier this month to review policy updates. Details, including the slideshow and a recording, of that meeting were posted online.
In a joint statement, DES and AHCCCS said the updates were made to address medical necessity and cost effectiveness concerns.
“AHCCCS revised its assessment tools and service policies in collaboration with Managed Care Organizations, providers and stakeholders. These updates are in response to conditions in the Centers for Medicare and Medicaid Services (CMS) waiver approval and to comply with House Bill 2945, which was signed into law in April 2025, and provided the supplemental funding for DDD. Initial proposed policy and procedural revisions were open for public comment from May 9, 2025 through July 9, 2025.
As a part of the policy changes, AHCCCS also updated the assessment tools used to determine eligibility for medically necessary Home and Community-Based Services (HCBS) for individuals under age 18 enrolled in Arizona Long Term Care System (ALTCS), which includes the Developmental Disabilities (DD) and the Elderly and Physically Disabled (EPD) programs. These tools now include standardized developmental milestone metrics to help case managers and support coordinators assess whether a child’s needs meet the definition of extraordinary care and should be further assessed for certain tasks/supports. This may include changes in the number of service hours children are approved to receive. The new assessment tool will take effect on October 1, 2025, and will be applied during each member’s regularly scheduled quarterly review thereafter.”
A spokeswoman for Governor Katie Hobbs said the policy changes were necessary to ensure the state funded appropriate treatments for children with special needs. Hobbs promised there would be alternatives beyond PPCG for families who relied on that service model.
“These changes were made to ensure services remain clinically appropriate for children while protecting the long-term viability of critical programs,” said Hobbs press secretary Liliana Soto. “We also recognize the need for additional support beyond these assessed services and our office, in collaboration with AHCCCS and DES, is actively exploring solutions to provide connections for families navigating these transitions.”
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by Jonathan Eberle | Jun 2, 2025 | News
By Jonathan Eberle |
Health insurers in Arizona will soon be required to involve a licensed physician before denying medically necessary care, under a new law aimed at increasing oversight and accountability in coverage decisions. House Bill 2175, introduced by Republican House Majority Whip Julie Willoughby (R-LD13), was signed into law after receiving strong bipartisan support in the state legislature.
The legislation mandates that an Arizona-licensed medical director must personally review any denial based on medical necessity, whether it involves a prior authorization or a claim. Crucially, the reviewing physician must exercise independent medical judgment and cannot rely solely on automated tools or artificial intelligence systems.
“This law ensures that a doctor, not a computer, is making medical decisions,” said Willoughby in a statement. “If care is denied, it should be by someone with the training and ethical duty to put patients first.”
The law is set to take effect on July 1, 2026, allowing insurers more than a year to adapt their internal procedures. The delayed implementation aims to give companies time to bring their policies into compliance, including staffing licensed physicians for the review process.
The measure comes amid growing national scrutiny over how insurers use algorithms and automated decision-making tools in the claims process. Critics argue that such systems can lead to denials of care without adequate clinical oversight, potentially putting patient health at risk.
Supporters of HB 2175 say the law provides a necessary check on those systems and re-centers medical decision-making around qualified professionals who are accountable to both patients and state standards.
“Arizona families deserve real oversight when it comes to life-changing medical decisions,” Willoughby said. “This law puts patients ahead of profits and restores a layer of accountability that’s long overdue.”
The new policy aligns with the House Republican Majority Plan, which emphasizes individual rights and system transparency. While the law’s primary sponsors are Republican, it passed with bipartisan support, reflecting broad legislative agreement on the need for more oversight in insurance determinations.
The implementation of HB 2175 will be closely watched by healthcare advocates, insurers, and policy analysts as Arizona becomes one of the latest states to regulate the use of AI in healthcare decision-making.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | May 27, 2025 | News
By Jonathan Eberle |
Arizona lawmakers have passed new legislation aimed at bolstering support for maternal mental health, particularly for women experiencing postpartum depression. The bill, HB 2332, was signed into law this month and is set to expand education and improve access to care across the state, with a particular focus on rural and underserved communities.
Sponsored by Rep. Julie Willoughby (R-LD13), who also serves as House Majority Whip, the measure directs the Arizona Department of Health Services to create and distribute educational materials on maternal mental health. These resources will be made available to both healthcare providers and patients during pregnancy and the postpartum period.
The new law also establishes a Maternal Health Advisory Committee, tasked with identifying and addressing barriers to care in regions where access to OB-GYN and mental health services is limited. The committee’s findings and recommendations are due by the end of 2026.
“We are standing up for Arizona moms and making sure they’re not left to struggle in silence,” Willoughby said in a statement. “This new law is a win for women, a win for rural Arizona, and a win for every community that values life and health.”
Willoughby, a practicing nurse and mother, has made maternal health a legislative priority. She emphasized that the law is designed to deliver “real help” through clear information and accessible support.
The advisory committee will be composed of a wide range of stakeholders, including OB-GYNs, family physicians, midwives, doulas, and representatives from rural hospitals, tribal health facilities, insurers, and emergency providers.
HB 2332 passed the Arizona Legislature with bipartisan support, aligning with broader efforts in the Republican majority’s policy platform to promote family well-being and rural health access.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | May 22, 2025 | News
By Matthew Holloway |
A bill designed to shield Arizona’s children from inappropriate and mature advertisements on digital applications was signed into law on Tuesday.
Under the new law, “A child-directed application shall take appropriate measures to prevent the display of inappropriate and mature advertisements on the child-directed application.” It describes “inappropriate and mature advertisements,” as “an advertisement that sells or promotes any of the following: (a) violence, (b) explicit language, (c) sexual content, (d) alcohol or drug use.”
Rep. Julie Willoughby, who sponsored the law, explained, “As a mom and a legislator, I know how easily harmful content slips into apps that claim to be kid-friendly. Parents should be able to trust that their children won’t be bombarded with adult-themed ads. This law compels Big Tech to clean it up or face serious penalties.”
If the application owners targeting children 11 and younger fail to take meaningful measures to prevent the display of “inappropriate and mature advertisements,” they could face civil penalties of up to $100,000 per violation effective January 1, 2026. With the proliferation of child-facing applications and their wide adoption base, the potential civil liability for application-makers could be catastrophic.
The bill enjoyed rare bipartisan cooperation in the Arizona legislature, passing the House 48-11 with one member not voting, passing the Senate 16-9 with five Senators not voting, and finally getting signed into law by Arizona’s veto-prone Democrat Governor Katie Hobbs.
The new law is an advance along the trajectory laid out by the House Republican Majority Plan, designed to promote the safety of the youngest Arizonans while protecting parental rights by bringing “greater transparency and accountability to the digital platforms children use every day.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
