AHCCCS Launches Traditional Healing Services for Medicaid Members
Phoenix, AZ – The Arizona Health Care Cost Containment System (AHCCCS) is proud to announce the launch of Medicaid-covered Traditional Healing services beginning October 1, 2025. This historic step affirms the state’s commitment to culturally responsive care and honors the healing traditions of Indigenous communities in Arizona.
“Today marks a critical step forward to expand health care for Tribal communities in Arizona,” said Governor Katie Hobbs. “I’ve heard directly from Tribal leaders about the important role Traditional Healing plays in their communities. My administration recognizes the value of culturally responsive health care, and I am proud we are delivering care that addresses the physical, mental, and emotional health of patients.”
Traditional Healing is a system of care deeply rooted in the cultural traditions of Tribal communities and passed down through generations of Tribal healers and knowledge keepers. These practices encompass physical, mental, emotional, and spiritual wellness and may now be reimbursed under Arizona’s Medicaid program through a federally approved Section 1115 waiver.
“Integrating Traditional Healing into our Medicaid program honors the cultural heritage and healing practices of Tribal communities”, said Christine Holden, Tribal Liaison for AHCCCS. “This initiative reflects our commitment to inclusive person-centered care that respects the diverse needs of our members.”
“Traditional Healing has long sustained the health of Tribal communities,” said John Molina MD, JD Director of the Arizona Advisory Council on Indian Health Care. “By supporting these practices, AHCCCS honors Tribal self-determination and the right of Tribal Nations to guide healthcare in alignment with their cultural values.”
“This milestone affirms the values of Indigenous healing an opens the doors to culturally grounded care, that nurtures the mind, body and spirit,” said Aaron Dennison Sam, Traditional Cultural Services and Practitioner at the Tséhootsooí Medical Center in Fort Defiance. “We extend our deepest gratitude to Governor Katie Hobbs, CMS, AHCCCS and the Arizona State Legislature for their bipartisan support and unwavering commitment to health equity.”
Under the new policy:
- Traditional Healing services may be provided in both inpatient and outpatient settings.
- Services must be delivered by practitioners employed or contracted by Indian Health Service (IHS) or Tribal 638 facilities.
- Each facility, in partnership with its Tribal community, defines the scope of services eligible for reimbursement.
- Services are billable under specific codes and subject to encounter limits consistent with Medicaid guidelines.
The Centers for Medicare and Medicaid Services (CMS) approved Arizona’s waiver in October 2024, making it one of only four states, alongside California, Oregon, and New Mexico, to offer Traditional Healing as a Medicaid benefit.
AHCCCS has worked closely with Tribal leaders, traditional practitioners, and healthcare partners to ensure the successful implementation of this program. The agency has also developed training materials and billing guidance to support providers in delivering and documenting these services.
For questions send an email to TribalRelations@azahcccs.gov and for answers to frequently asked questions on Traditional Healing coverage visit AHCCCS Traditional Healing.
