Arizona pauses Medicaid cuts for disabled children, adds exceptions and delays changes after backlash.

Arizona Governor Katie Hobbs has paused and revised changes to Medicaid services for children with disabilities after backlash over proposed cuts. The state’s AHCCCS will create an exception process for extraordinary care needs, delay service reductions, and prioritize reassessments for affected families. Emergency rulemaking, approved by the attorney general, fast-tracked the changes to address a budget shortfall, with formal rulemaking to follow. The move aims to balance fiscal responsibility with increased transparency and family involvement in care decisions.