State Health Updates

• Arizona – Governor Katie Hobbs announced that the Arizona Health Care Cost Containment System (AHCCCS) will launch an AI tool to detect and prevent fraud. Launching in July 2026, an AI-informed Medicaid claims prepayment review system through AHCCCS will use AI to rank claims by fraud, waste, and abuse (FWA) risk before payment is made, directing human review resources to the highest-risk claims while minimizing delays for compliant providers.
• Arkansas – Arkansas submitted a request to renew the ARHOME section 1115 Medicaid demonstration for five years with certain modifications. The request seeks authority to expand the Life360 HOMEs program by modifying provider enrollment requirements, update requirements for Qualified Health Plans serving the expansion adult program and introduce voluntary “Success Coaching” services to help at-risk populations meet federally mandated work requirements.
• California – The California Department of Health Care Services issued a response to CMS’ deferral of $1.1 billion in federal funding tied to California’s In-Home Supportive Services (IHSS) program, calling on CMS to immediately restore IHSS funds.
• District of Columbia – The Department of Health Care Finance finalized new regulations that allow Medicaid enrollees to submit claims for reimbursement of certain out-of-pocket expenses up to one year from the date of purchase.
• New Hampshire – Governor Kelly Ayotte welcomed CMS officials to New Hampshire to highlight the state’s approach to implementing the Rural Health Transformation Program (RHTP). Governor Ayotte emphasized her administration’s commitment to the success of the program, including the creation of GO-NORTH (the Governor’s Office of New Opportunities for Rural Health Transformation) to coordinate implementation. As a reminder, SHVS is tracking state RHTP implementation; this expert perspective identifies the state agencies leading RHTP work and includes links to state RHTP webpages.    
• North Carolina – The North Carolina Department of Health and Human Services announced the selection of organizations to serve as leads for the North Carolina Rural Organizations Orchestrating Transformation for Sustainability (ROOTS) Hub for the state’s RHTP. These organizations will work as regional networks connecting medical, behavioral health, and social supports. 
• North Dakota 
  • North Dakota Health and Human Services (HHS) posted information about the latest RHTP funding opportunities and resources including frequently asked questions to help applicants. 
  • HHS expanded access to Parent-Child Interaction Therapy (PCIT) through telehealth. PCIT is an evidence-based program for children ages two through seven and their parents or caregivers, designed to improve child behavior, strengthen parenting skills and build healthier parent-child relationships. Previously, PCIT was limited to in-person sessions.
• Oregon – The state’s overdose deaths have decreased over the past two years, according to provisional federal data and a new report released by Oregon Health Authority (OHA). The decline marks the first year-over-year decline since 2016. OHA also reported that the Oregon Opioid Settlement Prevention, Treatment and Recovery Board has allocated more than $90 million statewide for substance-use prevention, treatment and recovery services and supports statewide over the last two years. 
• Pennsylvania – Pennsylvania Department of Human Services Secretary Dr. Val Arkoosh detailed Pennsylvania’s commitment to stopping Medicaid fraud in an op-ed, highlighting the Commonwealth’s national leadership in monitoring Medicaid and other public assistance programs in order to identify and stop fraud and misuse before it happens.
• West Virginia – Governor Patrick Morrisey announced the launch of the new $29.5 million Provider Productivity Support Fund, a major initiative designed to reduce administrative burdens on healthcare providers and improve healthcare outcomes across the state, as part of the state’s RHTP. Also part of the RHTP, Governor Morrisey announced nearly $4 million in new investments to strengthen healthcare workforce recruitment efforts and expand training and mentorship opportunities for rural providers. 
• Wisconsin – The Department of Health Services announced a plan to eliminate viral hepatitis and a public dashboard to track progress of the plan’s goals. The plan was created in collaboration with key partners including community-based organizations, local and Tribal health departments, and healthcare providers. It will guide statewide efforts to improve testing, vaccination, and treatment to reduce death and illness associated with viral hepatitis infection.