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This week, read about: The government shutdown nearing the end as Congress delays action on ACA subs

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Connection Newsletter

By AzHHA Communications Nov. 13, 2025

Smart Brevity® count: 4 mins...1066 words

This week, read about:

  • The government shutdown nearing the end as Congress delays action on ACA subsidies.

  • AHA flagging concerns over cuts to state directed payments.

  • Applications for the 2026 cohort of the Healthcare Leadership Academy.

Government shutdown nears end as Congress delays action on ACA subsidies

Capitol, Washington D.C.

On Monday, seven Democrats and Sen. Angus King (I-Maine) joined Republicans to reach the 60 votes needed to advance a government funding agreement.

  • GOP leaders plan for the House to begin voting on the package after 4 p.m. on Wednesday. Speaker Mike Johnson holds a narrow two-vote margin to pass the bill.

The agreement includes a full-year spending package for the legislative branch and several federal agencies including the Food and Drug Administration, as well as a short-term continuing resolution funding all other government entities until Jan. 30, 2026.

  • Notably, the agreement does not include an extension of the Affordable Care Act (ACA) enhanced premium subsidies that expire at the end of the year.

  • Senate Majority Leader John Thune committed to hold a vote in the coming weeks on legislation to extend the tax credits in exchange for passage of the funding bill.

The bill extends various healthcare waivers and flexibilities retroactively from Oct. 1, 2025 until Jan. 30, 2026, including the following:

  • Elimination of scheduled Medicaid disproportionate share hospital cuts;

  • Extension of the enhanced Medicare low-volume adjustment and Medicare-dependent hospital program for rural hospitals;

  • Extension of key Medicare telehealth waivers and the hospital-at-home program;

  • Extension of the 1.0 floor on the Medicare work geographic practice cost index; and

  • Extension of add-on payments for Medicare ambulance services.

Despite Majority Leader Thune’s assurances, the GOP has indicated that it will press for Democrats to agree to language prohibiting states from allowing ACA plans to cover abortion. Meanwhile, President Trump has proposed direct cash assistance to eligible Americans to purchase the plan of their choice rather than extending the subsidies.

AHA flags concerns over cuts to state directed payments

Illustration of gloved hand holding a megaphone.

Last week, the American Hospital Association (AHA) urged (membership login required) the Centers for Medicare and Medicaid Services (CMS) to reconsider provisions in the One Big Beautiful Bill Act (P.L. 119-21) that cap state directed payments (SDPs) at Medicare rates, warning of major funding reductions.

Why it matters: SDPs help hospitals — especially those serving Medicaid patients — bridge the gap between low reimbursement rates and actual costs.

  • In Arizona, programs like HEALTHII are projected to deliver $2.9 billion in net payments next year.

AHA asks CMS to:

  • Clarify definitions so SDP caps align with existing Medicaid FFS UPL policies.

  • Use net-of-tax calculations to avoid deeper-than-required cuts.

  • Offer flexibility by grandfathering current rates or total payment amounts.

  • Allow post-payment reconciliation for SDP arrangements.

  • Remove hold-harmless attestations, which add paperwork without improving oversight.

Apply now: Healthcare Leadership Academy

Illustration of black and white bookshelves forming a negative space cross which is colored red, to evoke healthcare

Applications are currently being accepted for the 2026 cohort of the Healthcare Leadership Academy (HLA).

  • The AzHHA Foundation partners with Creighton University’s College of Professional and Continuing Education to provide healthcare leadership and management education to rising leaders within AzHHA member hospitals.

  • Nine months of learning begins in March 2026 and culminates in November 2026 which includes three in-person and six virtual sessions.

  • The HLA is geared toward mid-level managers and early-stage executives to prepare them for C-suite positions.

  • This is third cohort of the HLA. Learn more about the program here.

What’s next: To apply, submit your resume, letter of support and statement of purpose in one PDF to memberservices@azhha.org by 5 p.m. on Friday, Nov. 28, 2025.

If you have any questions, please contact Laura Dickscheid, vice president of member services and 2024 HLA participant, at memberservices@azhha.org.

Know the facts about Medicare Advantage

a microphone with exclamation points

Medicare Open Enrollment runs until Sunday, Dec. 7, 2025.

Why it matters: It’s important to understand how provider networks, referrals and authorizations may affect care.

Know the facts about Medicare Advantage:

  • Pros:

    • May include extra services like vision, hearing and dental.

    • Has an annual out-of-pocket maximum ($9,350 in-network/$14,000 combined in 2025).

    • Often combines drug and medical coverage into one plan.

  • Cons:

    • Limited provider networks (average plan only includes ~50% of U.S. physicians).

    • Requires approval for specialists, treatments and many services.

    • Hidden costs and denied coverages may lead to higher expenses than Original Medicare.

    • Higher costs may result from coverage denials and hidden fees under Medicare Advantage.

AzHHA members seeking more information or resources on Medicare Advantage and Original Medicare may contact communications@azhha.org.

Member spotlight: Tucson Medical Center

Tucson Medical Center logo

Tucson Medical Center was recognized by Becker’s Hospital Review in their “100 Hospitals and Health Systems with Great Orthopedic Programs” list for 2025.

What they’re saying:

“The orthopedic program at Tucson Medical Center, in partnership with the Tucson Orthopaedic Institute, delivers comprehensive, patient-centered care for a full range of bone, joint, muscle and connective tissue conditions. Together, these teams form southern Arizona’s leading orthopedic network, offering both nonsurgical and advanced surgical treatments tailored to each patient’s individual goals.”

Becker’s Hospital Review

Read more

Congratulations!

PAC promotion

UPCOMING EVENTS

Command340B webinar: Rebate ready series
Hosted by SunRx, there is one more upcoming session for 340B entities to address the complex changes to 340B. You must register for the webinar to be able to see the session live and the recording after. Register now for Rebate Model Briefing 3 on Thursday, Nov. 20, 2025.

Friday, Nov. 28 - Healthcare Leadership Academy application deadline
Applications are currently being accepted for the 2026 cohort of the Healthcare Leadership Academy. The AzHHA Foundation partners with Creighton University’s College of Professional and Continuing Education to provide healthcare leadership and management education to rising leaders within AzHHA member hospitals. To apply, submit your resume, letter of support and statement of purpose in one PDF to memberservices@azhha.org by 5 p.m. on Friday, Nov. 28, 2025.

IN THE NEWS

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