Governor Hobbs Proposes New Investments in AHCCCS Programs and System Modernization
PHOENIX, Ariz. — Today, 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 critical 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, all aimed at improving how Arizonans access care and get the support they need.
“The Governor’s budget prioritizes meaningful, long-term improvements in health care access and system modernization,” said AHCCCS Director Virginia Rountree. “These investments strengthen our ability to support members, providers, and communities statewide.”
The FY2027 Executive Budget proposal includes funding for the following AHCCCS initiatives:
Implementation and Mitigation of H.R. 1
- $14.4 million General Fund and 150 FTE for implementation
- $11.5 million General Fund for mitigation activities
- These funds support AHCCCS’s work to comply with federal requirements under H.R. 1, including system changes, expanded reporting, and eligibility operations. Mitigation funding ensures AHCCCS can continue to streamline processes and minimize disruptions for members and providers during implementation.
Modernization of the AHCCCS Mainframe System
- $15.2 million General Fund
- This investment continues the multi-year effort to modernize AHCCCS’s core technology infrastructure. Upgrading the agency’s legacy mainframe system improves efficiency, strengthens data security, and supports more responsive service delivery for members and contractors.
Implementation of the Federally Approved Justice Reentry Services Waiver
- $5.3 million General Fund
- Funding will support the implementation of Arizona’s Justice Reentry Section 1115 waiver, which allows AHCCCS to provide qualifying pre-release services to individuals exiting correctional settings. These services, including care coordination, behavioral health support, and medication continuity, aim to improve health outcomes and reduce recidivism.
The proposed budget needs Legislative approval before it can be finalized.
To view the Governor’s FY2027 Executive Budget Proposal, visit: Governor Hobbs Budget Presentation FY2027
For more information, contact pio@azahcccs.gov.
