AHCCCS Traditional Healing
Overview
Traditional healing is a culturally grounded system of care developed and practiced by generations of Tribal healers. These methods support physical, mental, emotional and spiritual well-being, and reflect the values, beliefs and practices of Arizona’s Tribal communities.
The AHCCCS Traditional Healing initiative aims to offer culturally appropriate options for eligible members to maintain and sustain health and wellness. These services are available through facilities and clinics that provide or coordinate traditional healing practices, ensuring that care is delivered in a way that honors Indigenous knowledge and healing traditions.
History
Arizona’s path toward Medicaid reimbursement for traditional healing services began in 2015 with the formation of a Traditional Healing Workgroup. This collaborative effort was led by Arizona Tribal representatives and included participation from Indian Health Service (IHS), Tribal 638s, Urban Indian Organizations (UIO), the Arizona Advisory Council on Indian Health Care (AACIHC), the Inter Tribal Council of Arizona, and traditional healers.
In partnership with the workgroup, AHCCCS submitted an 1115 Waiver Request to the Centers for Medicare and Medicaid Services (CMS) in the summer of 2016. The request sought federal authority to reimburse for traditional healing services provided by IHS and 638 facilities and UIOs in Arizona.
In 2024, AHCCCS received CMS approval to cover traditional healing services delivered through IHS and Tribally operated health facilities. This approval allows AHCCCS to develop policies and processes for reimbursing services provided by traditional healers who are employed by or contracted with an IHS or Tribally-operated health center, also known as a 638 facility. Additionally, traditional healers affiliated with UIOs may provide services through care coordination agreements with IHS or 638 facilities. Under this federal approval, traditional healing services are recognized as covered Medicaid benefits in both inpatient and outpatient settings.
Traditional Healing Workgroup
The Traditional Healing Workgroup is a community-led advisory body that guides the design, integration, and implementation of Traditional Healing services within Arizona’s Medicaid system. The Workgroup brings together Tribal leaders, IHS/Tribal 638/Urban Indian Organization (I/T/U) representatives, traditional healers, and Tribal-serving partners to ensure services are culturally grounded and responsive to the unique needs, values and practices of Tribal communities.
Out of deep respect for Tribal sovereignty, self-determination, and the sacred nature of Traditional Healing, AHCCCS strongly encourages Tribal Nations, IHS/638 facilities interested in expanding Traditional Healing services, and UIOs to delegate official representatives and identify traditional knowledge keepers to participate in the Workgroup.
The success of this initiative depends on the voices, perspectives, and leadership of Tribal Nations, IHS/638 facilities, Urban Indian Organizations, traditional healers, and other Tribal stakeholders. To ensure that Traditional Healing services honor the values, customs, and priorities of Tribal communities, it is essential that they be shaped by those with lived experience, cultural knowledge, and deep community ties.
AHCCCS warmly invites participation from Tribal Nations, I/T/Us, and other Tribal-serving partners. Join us in ensuring that Traditional Healing services are led by and for the communities they serve.
Please note: If you are not a current Workgroup member, Tribal leader, Tribal delegate, or UIO leader, please complete the Traditional Healing Workgroup Interest Form before registering for the upcoming meeting. This helps ensure thoughtful coordination and representation in line with the Workgroup’s purpose and criteria.
About The Traditional Healing Program
Services and Eligibility
To receive coverage for traditional health care practices under the demonstration, a member must be:
- a Medicaid beneficiary, and;
- eligible to receive services delivered by or through IHS or Tribal facilities as determined by the facility.
Each IHS/638 facility, in partnership with their local Tribal community, will individually define which services are most appropriate for Medicaid reimbursement. The covered traditional healing services, limitations, and exclusions shall be described by each facility (working with each tribe they primarily serve).
Traditional Healing Providers
Traditional Healing Practitioners may vary widely depending on the Tribe served. Therefore, a facility governing body may serve as the Qualifying Entity or designate another Qualifying Entity from the Tribe(s) served to endorse qualified Traditional Healing Practitioners. A Traditional Healing Practitioner is defined as a “person who is a contractor or employee of the Facility and recognized by the Qualifying Entity to provide traditional healing services.”
Practitioners or providers of traditional health care practices must be employed by or contracted with IHS or Tribal facilities. Each qualifying facility is responsible for determining that each practitioner, provider, or provider staff member employed by or contracted with the qualifying facility to provide traditional health care practices:
- Is qualified to provide traditional health care practices to the qualifying facility’s patients, and
- Has the necessary experience and appropriate training.
The qualifying facility is also expected to:
- Establish its methods for determining whether its employees or contractors are qualified to provide traditional healthcare practices,
- Bill Medicaid or CHIP for traditional health care practices furnished only by employees or contractors who are qualified to provide them, and
- Provide documentation to the state about these activities upon request.
Reimbursement Methodology
The state is required to comply with federal payment rate-setting requirements to establish the rate and methodology for traditional healthcare services. After meeting all requirements for claiming FFP, the state may draw FFP for traditional health care practices after using the payment methodologies to pay providers by utilizing the methodologies described below:
Outpatient Facilities:
These are reimbursed at the IHS All Inclusive Rate (AIR) published in the Federal Register that is in effect on the date of service for Medicaid outpatient services.
- This AIR would be a part of the up to 5 AIRs within a single day that can be reimbursed to IHS/Tribal facilities.
Inpatient Facilities:
Traditional healing is not reimbursed separately from the existing inpatient AIR and is allowable within the existing AIR. The current inpatient AIR is not inclusive of traditional healing services, but CMS has indicated that it will be included in the future calculation of the AIR.
Billing Guidance
Traditional Healing Services Billing Overview 10/1/2025
Providers Offering Traditional Healing Services
Tribal 638 Facilities
- Fort Defiance Indian Health Board, Fort Defiance, AZ
- Terrilynn Nez-Chee
Revenue Cycle Manager
Terrilynn.Nez-Chee@fdihb.org - Winslow Indian Health Care Center, Winslow, AZ
- Carol McCabe
Revenue Cycle Manager
carol.mccabe@wihcc.org - Tuba City Regional Health Care Corporation, Tuba City, AZ
- Dollie Smallcanyon
Chief Community Health Services Officer
dollie.smallcanyon@tchealth.org - Pearl Curley
CLRP Program Manager for Native Medicine Services
Pearl.Curley@tchealth.org - Hanley Manygoats
Navajo Medicine Practitioner
hanley.manygoats@tchealth.org
Indian Health Service Facilities
- Indian Health Service- Chinle Comprehensive Health Care Facility, Chinle, AZ
Urban Indian Organizations
- Native American Connections
- Native Health
- Joy Golden
Behavioral Health Division Director
jgolden@nachci.com
Interested in Learning More?
Providers and members: If you would like more information about how to get involved or to find Traditional Healing Services near you, please feel free to reach out to us directly at TribalRelations@azahcccs.gov.
