Governor Hobbs Signs HB2177 into Law, Strengthening AHCCCS Coverage for American Indian/Alaska Natives

GANADO, Ariz. — Sage Memorial Hospital (SMH) today applauded Governor Katie Hobbs for signing House Bill 2177 into law on April 13. The bill authorizes the Arizona Health Care Cost Containment System (AHCCCS) Director to seek federal approval of a Section 1115 waiver from the Centers for Medicare & Medicaid Services (CMS) for continued Medicaid payments for health services provided to American Indian and Alaska Native (AI/AN) members at Indian Health Service (IHS) and tribal health facilities. If approved, the waiver will ensure Medicaid reimbursements for optional benefits that may be reduced or eliminated from the state plan on or after September 2010.

The bill, sponsored by Representative Julie Willoughby (Majority Whip), worked closely with SMH to educate legislators on the 100% Federal Medicaid Assistance Percentage tribal and IHS facilities receive per federal law.

“We thank Representative Julie Willoughby for championing this bill and for her strong leadership. We also commend the strong bipartisan support and the advocacy efforts of tribal leaders, health organizations, and community members who helped advance this important legislation.” said Melinda White, CEO of Sage Memorial Hospital. “By codifying the annual waiver application process, Arizona is safeguarding reimbursement for care delivered through tribal and IHS systems.”

During the legislative process, White testified before the House Health and Human Services Committee, sharing a powerful patient story of an individual who regained access to dental services, vision care, and ongoing diabetes management through AHCCCS-supported services at tribal facilities.

Approximately 65% of SMH’s third-party revenue comes from AHCCCS, stressing the program’s importance to the hospital’s ability to serve patients on the Navajo Nation and surrounding areas.

“This proactive, forward-thinking bill will protect and preserve Medicaid reimbursement for all Tribal and IHS facilities across the entire state of Arizona. The next step is to advocate to our federal partners at CMS.” said Kim Russell, Policy Advisor, SMH.

MEDIA CONTACT:
Christian Bigwater,
Chief Patient Experience Officer
christian.bigwater@sagememorial.com
Office – (928) 755-4532 | Cell – (928) 221-4205