Dr. Dan Derksen, the director of the University of Arizona Center for Rural Health, warns of a bureaucratic shift that could leave up to 400,000 Arizonans without Medicaid coverage by 2027.

Speakers at a rural and public health policy forum in Phoenix warned of hospital strain and rising rates of uninsured patients, though programs could soften some impacts.

Gov. Katie Hobbs submitted the state’s application in November for $200 million per year through the Rural Health Transformation Program. The revised budget was sent back Jan. 30 to the Centers for Medicare and Medicaid Services to reflect the $167 million annual award instead.

Arizona Governor Katie Hobbs has revised the state's rural health spending plan after receiving less federal funding than expected.
The state will receive $167 million, which is $33 million less than the original $200 million plan.
Workforce development remains the top priority, despite a nearly $10 million cut in its allocation.

Dr. Derksen interviewed about expiring tax credits for ACA plans and declining enrollment.

The Affordable Care Act’s enhanced premium subsidies expired at the end of 2025, affecting the vast majority of enrollees who relied on reduced health insurance costs.

The Trump administration is giving Arizona about two-thirds of what Gov. Katie Hobbs sought in newly available federal aid to help shore up rural health care.