The House voting on an ACA subsidy extension while the Senate talks are mired in Hyde debate.
An update on the Rural Health Transformation Program.
AzHHA’s 2025 Annual Report
AzHHA’s 2025 Annual Report is now available online!
Why it matters: Take a look back on some of the highlights and wins on behalf of Arizona’s hospitals from 2025 including:
Policy and advocacy priorities and accomplishments
State budget highlights
Arizonans for Better Healthcare
Amplifying our collective voice
AzHHA membership perks
Grant-funded programs covering emergency preparedness, maternal health and workforce that improve Arizona’s healthcare system
The big picture: The report illustrates the value of an AzHHA membership and showcases what we accomplished together in 2025.
What’s next: We remain focused on protecting access to care to build a stronger, more resilient healthcare system for the patients and communities that we all serve.
House votes on ACA subsidy extension; Senate talks mired in Hyde debate
House Democrats are forcing action this week on a clean, three-year extension of the Affordable Care Act’s (ACA) enhanced premium tax credits, using a discharge petition that has drawn support from four Republicans.
The House is expected to pass the bill this week.
The timing is tight: with open enrollment ending on Thursday, Jan. 15, 2026, millions of consumers are facing higher premiums or the risk of losing coverage after the subsidies expired at the end of 2025, underscoring lawmakers’ shrinking window to cut a deal.
What's next: The Senate, however, is unlikely to take up the House’s clean extension.
A bipartisan group of senators is negotiating a proposal that would marry a two-year extension of the ACA subsidies with new premium payments, income restrictions and cost-sharing reductions.
Meanwhile, Senate Majority Leader John Thune expressed this week that any bipartisan path must have three components: minimum premium payments, an HSA-related component and a solution to the Hyde Amendment abortion debate.
Thune characterized the Hyde debate as “probably the most challenging part of [these negotiations].”
While Republicans continue to press for abortion restrictions tied to federally subsidized coverage, Democrats insist additional abortion language is a non-starter.
President Trump told House Republicans they may need to “be a little flexible on Hyde,” triggering immediate backlash from conservatives who insist any agreement to extend lapsed Affordable Care Act subsidies must include language banning the use of federal funds for abortions.
Update: Rural Health Transformation Program
On Monday, Dec. 29, 2025, the Centers for Medicare and Medicaid Services (CMS) announced awards for the Rural Health Transformation Program (RHTP).
Arizona was awarded $166,988,956 of our $200,000,000.
Why it matters: Arizona’s rural communities face significant challenges, including geographic isolation, provider shortages, aging facilities and limited access to care.
Through the RHTP, Arizona can:
Invest in infrastructure such as telehealth and broadband to reduce distance-related barriers.
Support workforce recruitment and retention to maintain hospital and clinic operations.
Develop care models aimed at improving financial sustainability for rural hospitals.
Strengthen coordination among hospitals, EMS, behavioral health providers and community organizations.
Earlier this week, AzHHA facilitated a discussion to provide AzHHA members with an opportunity to explore joint initiatives that can meaningfully improve rural access, workforce stability, technology infrastructure and coordinated care.
If you have any questions, please reach out to Helena Whitney, SVP of policy and advocacy.
Why it matters: The court found that the Health Resources and Services Administration (HRSA) did not follow the Administrative Procedure Act (APA) requirements.
This decision protects hospitals from increased compliance costs and reduced services.
What's next: The government has appealed the injunction, but the temporary halt remains in place during the litigation.
AzHHA plans to file an amicus brief in support of the plaintiffs, collaborating with other state hospital associations.
Bottom line: AzHHA is committed to protecting the 340B program and will keep members updated on significant developments.
DEA, HHS extend telemedicine prescribing flexibilities through 2026
On the final day of December, the Department of Health and Human Services (HHS) and the Drug Enforcement Administration (DEA) issued a Fourth Temporary Extension of COVID‑era telemedicine rules, preserving the ability for clinicians to prescribe Schedule II–V controlled substances via telemedicine through Dec. 31, 2026.
This continuation allows agencies additional time to finalize a permanent special registration pathway for telemedicine‑based controlled‑substance prescribing.
Why it matters: Millions of patients rely on remote prescribing to access clinically necessary medications—including treatments for ADHD, anxiety, chronic pain, insomnia and opioid use disorder (OUD).
Telemedicine flexibilities have become central to maintaining uninterrupted care for these conditions.
The extension runs Jan. 1–Dec. 31, 2026, continuing:
Remote prescribing of Schedule II–V medications without a prior in‑person exam.
Audio‑only prescribing for certain Schedule III–V narcotics used in opioid use disorder treatment.
Application of these flexibilities to all practitioner–patient relationships, not only those established during the COVID‑19 public health emergency.
🚀Launching MEDSIS with MFA
The Arizona Department of Health Services (ADHS) is set to unveil its MEDSIS modernization system by the end of January 2026.
Why it matters: This rollout introduces multi-factor authentication (MFA), enhancing security by requiring users to verify their identity beyond just a password.
Go deeper: The official launch is slated for Tuesday, Jan. 27, 2026.
Friday, Feb. 13, 2026 - The Hertel Report Winter State of the State This bi-annual conference offers networking and timely insights on Arizona’s healthcare market, including Medicaid, Medicare Advantage, the Affordable Care Act Marketplace, ACOs and commercial trends. Speakers include AzHHA’s SVP of Policy and Advocacy Helena Whitney. AzHHA members can use coupon code AZHHA2026 for $15 off. Register here.
