State Health Updates

• Arizona – The Arizona Health Care Cost Containment System (AHCCCS) joined Governor Katie Hobbs and other state agencies as she released her FY2027 Executive Budget, which includes investments to support important AHCCCS projects. The proposal provides funding to: carry out requirements in H.R.1; continue modernizing the agency’s mainframe system; and launch Arizona’s Justice Reentry Services waiver.
• Colorado 
  • Lieutenant Governor Dianne Primavera, the Colorado Office of eHealth Innovation, and the Colorado Smart Cities Alliance launched the eHealth Solutions Challenge, a statewide innovation initiative designed to help identify, vet, and pilot emerging technology solutions to improve health-related data sharing across systems and sectors. The eHealth Solutions Challenge connects participating governmental and intergovernmental agencies with innovative solution providers and offers up to $150,000 in seed funding to demonstrate promising technologies.
  • The Colorado Division of Insurance shared a new, independently-conducted analysis by Mathematica, showing that the Colorado Option is saving Coloradans money. On average, Colorado Option plans have lower premiums in many counties and lower out-of-pocket spending by enrollees. Enrollment in the Colorado Option has increased year over year since its introduction in Plan Year 2023. The analysis was required by the bill that established the Colorado Option and is meant to assess the impact of the Colorado Option on health plan enrollment in the individual and small-group health insurance markets, health insurance affordability in those markets, and health equity.
• Massachusetts – Governor Maura Healy announced action to make it easier and more affordable for Massachusetts residents to get the healthcare they need. The Division of Insurance is issuing updated regulations to streamline prior authorization practices, including eliminating prior authorization for many routine and essential services. She also announced the creation of a Health Care Affordability Working Group charged with advancing proposals to reduce healthcare costs across the system, ultimately reducing costs for people and businesses across the state. 
• Michigan – The Michigan Department of Insurance and Financial Services and the Michigan Department of Health and Human Services are advising Michiganders that, despite the U.S. Department of Health and Human Services announcing an updated childhood vaccine schedule, most health insurance plans will continue to cover childhood vaccines without cost-sharing. Under the new federal guidance, all vaccines on the CDC’s vaccine schedule remain covered with no out-of-pocket cost by private insurance plans and federal coverage programs, such as Medicaid.
• Montana – The first meeting of the Rural Health Transformation Program (RHTP) Stakeholder Advisory Committee was scheduled for Thursday, January 22 from 10 a.m. to 4 p.m. and was hosted by the Montana Office of Rural Health. The committee was established to provide guidance to DPHHS to support effective implementation of the RHTP initiatives. The meeting focused on project goals and gathering public feedback. However, no funding decisions were made. While the meeting was open to the public, some portions of the meeting were closed. As a reminder, SHVS is tracking state efforts to implement the RHTP. 
• Nebraska – The Nebraska Department of Health and Human Services announced that staff from CMS visited for meetings to advance implementation of Medicaid work requirements as required under H.R. 1. The new requirements will take effect in Nebraska on May 1, 2026. For resources related to the implementation of work reporting requirements with the goal of preserving coverage for people who are eligible, SHVS has created a one-stop resource page. 
• New Jersey
  • The New Jersey Department of Health (NJDOH) announced the adoption of rules creating a single, integrated license for outpatient healthcare facilities.  The rules address a complex regulatory regime that has impeded healthcare providers’ ability to offer coordinated physical and behavioral health. Under the previous, fragmented regulatory system, facilities offering primary care, mental health, and substance-use disorder treatment services in a single location were required to secure three separate licenses, each with different regulatory requirements, and also required providers to keep separate medical records when a patient received physical and behavioral health services.
  • Governor Phil Murphy signed legislation updating New Jersey’s laws to ensure immunization guidance is state-based and aligns health insurance coverage requirements with that guidance. Concurrently, NJDOH announced a comprehensive update to the state’s vaccine regulations. Previously, New Jersey laws relied on recommendations by the Advisory Committee on Immunization Practices (ACIP) of the federal Centers for Disease Control and Prevention to inform vaccine recommendations. Now, NJDOH will consider the recommendations of the American Academy of Pediatrics, the American Academy of Family Physicians, the American College of Obstetricians and Gynecologists, and the American College of Physicians, as appropriate, in addition to ACIP’s recommendations. For guidance to help states support continued vaccine access and maximize flexibility on the ground, see this State Vaccine Toolkit. 
• Nevada – Nevada Health Link announced that open enrollment period for Plan Year 2026 concluded with 104,286 Nevadans enrolling in comprehensive health coverage through the state-based marketplace, including the new public option, known as Battle Born State Plans, which accounted for 10% of total enrollments. Of the 104,286, there were 63,563 Nevadans who actively shopped, showing a 32% increase in engagement of active enrollments from last year’s open enrollment. SHVS continues to track state reporting on open enrollment for plan year 2026.
• Oregon – Governor Tina Kotek announced a coordinated effort with the Oregon Health Authority (OHA) and the Hospital Association of Oregon to stabilize and sustain labor and delivery services across the state. OHA will distribute $25 million following input from impacted hospitals: $15 million will provide stabilization payments to smaller, rural hospitals that offer maternity services and $10 million will be invested in larger hospitals through Diagnosis-Related Group rates and is reflected in the 2026 coordinated care organization rates.
• Virginia – Governor Abigail Spanberger signed a series of day-one executive orders, including: 
  • One that orders the Governor’s Secretaries and all executive branch agencies to submit reports within 90 days identifying immediate, actionable budgetary, regulatory, or policy changes that would reduce costs for Virginians. The reports must address cost savings in areas such as housing, healthcare, energy, education, childcare, and everyday living expenses (groceries), where relevant to the agency or secretariat.
  • One that establishes across-agency Interagency Health Financing Task Force within the Office of the Secretary of Health and Human Resources to develop a unified financing strategy to maximize federal funding, reduce duplicative spending, and strengthen Virginia’s long-term healthcare infrastructure. The task force is charged with identifying initiatives and services most at risk for losing funds—especially as a result of federal policies, directing an inventory and review of financing processes, and directing a review of managed care organization performance and oversight with a focus on outcomes and efficiency of spending. 
• Washington – The Office of the Insurance Commissioner published a report that provides a data snapshot of private equity trends and investments in Washington’s healthcare system. The report highlights data on private equity-backed deals by healthcare service category, deal size and holding periods, among other information. As a reminder, SHVS has published a toolkit for states on regulating financialization in the healthcare system.