ArMA 2025 Legislative Report

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LEGISLATIVE REPORT

Executive Summary

Dear ArMA Members and Supporters,

I am proud to report that Arizona’s 2025 Legislative Session represented a banner year for physicians and their patients. Once again, the Arizona Medical Association was the preeminent physician advocate at the Arizona State Capitol and beyond, and we secured historic legislative wins that will directly benefit you.

Alongside our allies, we fought for policies that put patients first, aid you in your practice of medicine, and ultimately, strengthen the communities we serve. As a result, we passed an unprecedented number of proactive bills, including legislation to prohibit insurance companies from using Artificial Intelligence to deny claims, invest $4 million in graduate medical education, and expedite physician credentialing. We also tackled administrative burdens hindering you and your patients by clarifying medical assistants’ role in placing urinary catheters and prohibiting regulatory boards from unnecessarily examining aspects of your health history that don’t impact your ability to practice medicine.

However, this year’s legislative session wasn’t a one-sided game. We also played significant defense against a slew of serious threats. The physician community brought down legislation that would have chipped away at physician-led care teams under the guise of expanding access to care. We conquered misguided legislation that would have increased the spread of preventable diseases and eroded public trust in medicine. And, we stood toe-to-toe with powerful interest groups set on protecting their ability to delay and deny care despite the cost to patient care, and we won.

An informed physician is a formidable advocate. That’s why ArMA proudly shares an annual legislative report. Each legislative session sets the stage for the next and contributes to the larger legacy of physician advocacy in Arizona. So, if you’re wondering where ArMA’s efforts will be placed in 2026, you can begin by reviewing how we exerted them in 2025.

On behalf of the House of Medicine, I look forward to building on our successes and making Arizona the best place to live, work, and practice medicine.

Sincerely,

Introduction

The First Regular Session of Arizona’s 57th Legislature commenced on Monday, January 13, 2025. While the Arizona Medical Association always hopes for a 100-day session marked by bipartisan cooperation, experience has taught us to expect otherwise.

Unfortunately, this year proved no different. With a slim Republican majority in the House and Senate and a Democratic Governor, the 2025 Legislative Session mirrored the partisan division and political gridlock of previous years.

In her Opening Day State of the State Address, Governor Katie Hobbs outlined the “Arizona Promise,” a vow that anyone willing to work hard can build a good life for themselves and their family. She outlined plans to achieve this promise, including affordable housing, education investment, water management, and bipartisan proposals like border security and law enforcement pay raises.

Despite these aspirations, the session was marked by a record-breaking 174 vetoes from Governor Hobbs, underscoring the strained relationship between the executive and legislative branches.

On a more positive note, Arizona’s fiscal outlook improved significantly compared to 2024, when the state faced a $1 billion deficit. This year’s modest surplus allowed for targeted, impactful investments, including long-awaited funding for graduate medical education.

SESSION TIMELINE

JAN 13

57th State Legislature Convened; Governor Hobbs Delivers State of the State Address

FEB 3

Introduction Deadline for Senate Bills

FEB 10

Introduction Deadline for House Bills

FEB 28

Last Day for Bills to be Heard in Committee

100th Day of Session APR 22

Legislature Adjourned Sine Die JUN 27

In the end, ArMA’s Advocacy Team and our allies overcame the partisan divide and managed to not only defeat all opposed bills, but also enact historic reforms that put Arizona at the forefront of addressing the issues that matter most to you and your patients.

Governor Hobbs Signs State Budget JUN 27

General Effective Date SEPT 2

ArMA’s Promise

ArMA is the physician community’s advocate, ally, and resource. We navigate the turbulence of healthcare so physicians can deliver the best possible care and experience the joy of medicine.

Together, we’re driving change, boosting careers, and creating meaningful connections.

Legislative Spotlight: Keeping Healthcare Human Regulating AI in Medical Insurance Claims

This year, the Arizona Medical Association celebrated the historic passage of House Bill 2175, which was signed by Governor Katie Hobbs on Monday, May 12.

The legislation — introduced by ArMA and sponsored by Representative Julie Willoughby — sets a national precedent for regulating and safeguarding patients from the use of Artificial Intelligence in commercial medical insurance.

HB2175 is among the first legislation of its kind in the U.S. to prohibit medical insurance companies from using AI as the final decision-maker in the review and denial of claims for medical necessity and prior authorization requests.

Once in effect, the bill guarantees cases requiring medical judgment are reviewed by licensed medical professionals with the training, experience, and ethical responsibility to make clinical decisions.

Legislative Priorities

Physicians are uniquely positioned to be the most trustworthy advocates for public health, and the Arizona Medical Association is uniquely positioned to be the most effective advocate for physicians. By amplifying the physician voice at the Arizona State Capitol and beyond, we’re making Arizona the best place to practice medicine and receive care.

ArMA’s Advocacy Team focused on four key areas of healthcare legislation during Arizona’s 2025 Legislative Session:

Session by the Numbers

ArMA’s Advocacy Team works year-round to protect the House of Medicine and further patient care. To fully grasp the magnitude of and need for our efforts, read our statistical summary of this year’s session.

166

Days of Legislative Session

174 Bills Vetoed, Constituting a State Record

1,724

Bills Introduced

200+

Healthcare Bills Tracked by ArMA

2 Ballot Referrals

265 Bills Signed Into Law

646

Letters Sent to Elected Officials by Physicians

Legislative Highlights

Get a glimpse into the Arizona Medical Association’s highlights from the 2025 Legislative Session, including the passage of precedent-setting legislation. Want to read more in-depth? Keep reading for comprehensive summaries of every major bill we influenced this year.

WINS

HB2175

Prohibits Artificial Intelligence from making the final determination in medical claims and prior authorization denials based on medical necessity.

SB1291

Expedites physicians’ insurance credentialing process and allows for retroactive billing for care provided during the credentialing period.

GME Funding

Increases Arizona’s investment in graduate medical education by $4 million, which will be federally matched, to create new residency slots.

Major Legislation: Administrative Burdens

The Issue:

Physicians are facing mounting administrative burdens that interfere with patient care through claim delays, claim denials, and excessive utilization review. Administrative Burdens

What ArMA is Doing:

ArMA actively supports policies that remove administrative barriers, promote insurer transparency, and improve the prior authorization process. Our goal is to create a system that centers patient care, supports the practice of medicine, and allows the physician-patient relationship to flourish.

HB2025 (scope of practice; medical assistants)

Sponsor: Representative Selina Bliss

Stance: ArMA-initiated & Priority

Summary: HB2025 clarifies that medical assistants may place and remove urinary catheters under appropriate supervision. This bill ensures that physician practices and hospitals can maximize efficiencies through the responsible delegation of tasks.

Status: Signed Into Law

HB2130 (claims; prior authorizations; denials; contact)

Sponsor: Representative Selina Bliss

Stance: ArMA Priority

Summary: ArMA leads the fight for meaningful reforms to commercial insurance claims denials, and HB2130 is a prime example of these efforts. This bill would have required insurers to include contact information for a representative to assist with appeals and a definitive explanation as to why the claim was denied for every denial. The bill passed out of the House with unanimous support, but unfortunately, it stalled in the Senate. ArMA will continue to bring this legislation back until we are victorious.

Status: Ongoing

HB2175 (prior authorization; claims)

Sponsor: Representative Julie Willoughby

Stance: ArMA-initiated & Priority

Summary: ArMA is proud to be one of the first states in the country to successfully champion legislation that will prohibit the use of AI to deny claims and prior authorizations based on medical necessity. This top-tier initiative ensures that AI can continue to be used in ways that will expedite and streamline health insurance appeals, but will not supplant medical judgment.

Status: Signed Into Law

SB1102 (pharmacy benefits; prescribing; exemption)

Sponsor: Senator Janae Shamp

Stance: ArMA Priority

Summary: This bill prohibits pharmacy benefit managers and insurance companies from engaging in “non-medical switching,” which is a cost-saving measure where a patient’s medication is switched for reasons unrelated to the patient’s health and without the approval of their physician.

Status: Signed Into Law

SB1512 (utilization review; prior authorization; requirements)

Sponsor: Senator Kevin Payne

Stance: ArMA Priority

Summary: This patient-centered reform would have required insurers to honor a new member’s current prior authorizations for at least 90 days, ensuring continuity of care so patients do not lose access to medications and treatments they need. Additionally, it required all prior authorizations to be shared with the public on an accessible website in plain language, and, if the insurer implemented a new prior authorization they would have had to provide 60 days’ notice. Finally, the bill would have required insurers to honor prior authorizations for at least six months or the length of treatment for most conditions and at least one year for chronic and long-term care conditions.

Status: Ongoing

Major Legislation: Title & Practice Protection

The Issue:

Title & Practice Protection

Scope of practice expansions and licensing updates that are not accompanied by proper education and training are threats to patient care.

What ArMA is Doing:

Preserving legislative safeguards for the consideration of scope of practice, licensing, and regulation changes for healthcare professionals to ensure Arizonans receive optimal care from qualified professionals.

HB2761 (health professionals; disclosure; unprofessional conduct)

Sponsor: Representative Beverly Pingerelli

Stance: ArMA Priority

Summary: HB2761 would have made it an act of unprofessional conduct for a health professional to use any title other than the one indicated in their professional statutes and allowed applicable regulatory boards to enforce. Misuse of the title “doctor” is rampant and dangerous for patients. Unfortunately, the bill did not receive a hearing this year, but it remains a priority for ArMA.

Status: Ongoing

HB2134 (physician assistants; qualifications)

Sponsor: Representative Selina Bliss

Stance: Opposed

Summary: This legislation attempted to remove physician supervision from the statute governing collaborative practice for physician assistants. The problematic language was removed in the House Health Committee and advanced without concern from ArMA until it stalled in the Senate.

Status: Dead

HB2583 (physical therapists; imaging; laboratory tests)

Sponsor: Representative Selina Bliss

Stance: Opposed

Summary: This legislation would have allowed physical therapists to order and interpret lab testing without sufficient training to do so safely. The problematic language was removed, and the bill advanced with ArMA’s neutrality.

Status: Signed Into Law

HB2181 (physical therapy; durable medical equipment)

Sponsor: Representative Selina Bliss

Stance: Opposed

Summary: This rushed legislation would have allowed physical therapists to prescribe Durable Medical Equipment. The bill was defeated in its first committee hearing.

Status: Defeated

SB1125 (psychologists; prescribing authority)

Sponsor: Senator TJ Shope

Stance: Opposed

Summary: This dangerous scope expansion will look familiar if you’ve been following health policy in Arizona for the last few years. The bill would allow psychologists with insufficient education and training to prescribe psychotropic medications. It was defeated in the House thanks to the dedicated efforts of the House of Medicine, but it will likely return in future years.

Status: Defeated

SB1214 (pharmacists; independent testing; treatment)

Sponsor: Senator TJ Shope

Stance: Opposed

Summary: SB1214 is a dangerous scope expansion proposal that has been pushed by retailers and pharmacists for the last several years. It would allow pharmacists to test and prescribe medications for flu, strep, COVID, and HIV PrEP. ArMA has been able to defeat this bill, but we expect to see it introduced again in future sessions.

Status: Defeated

Major Legislation: Addressing the Workforce Shortage

The Issue:

Addressing the Workforce

Shortage

For more than 20 years, Arizona’s healthcare system has suffered from an ongoing shortage of healthcare personnel. The state is projected to be short by more than 8,000 physicians by 2030. The COVID-19 pandemic only exacerbated the shortage, which now poses a dire threat to Arizona physicians.

What ArMA is Doing:

Advocating for a healthcare workforce model with a dedicated, consistent funding source that effectively addresses shortages across the entire care team.

HB2173 (mental health inquiry; prohibition)

Sponsor: Representative Julie Willoughby

Stance: ArMA Priority

Summary: This legislation tackles stigma around receiving mental health treatment by prohibiting health profession regulatory boards from including questions in their licensure documents about whether an individual has sought mental health assistance, treatment, or diagnosis. The boards may only ask about current issues that impact one’s ability to safely practice.

Status: Signed Into Law

SB1395 (NOW: requirements; international medical graduates)

Sponsor: Senator TJ Shope

Stance: ArMA Priority

Summary: This legislation allows a currently enrolled resident who went to medical school outside of the United States to apply for licensure on the same timeline as their peers.

Status: Signed Into Law

Major Legislation: Protecting Public Health

The Issue:

Protecting Public Health

Incredible achievements in the realm of public health have increased life expectancy, decreased mortality rates, and virtually eliminated many communicable diseases. However, misinformation continues to be a pervasive and dangerous threat to our communities.

What ArMA is Doing:

Working closely with local, state, and federal agencies to ensure Arizona implements science-based public health policies to prevent and minimize disease.

HB2179 (marijuana; advertising; restrictions)

Sponsor: Representative Selina Bliss

Stance: ArMA Priority

Summary: This critically important legislation establishes regulations for advertisements for marijuana targeting children that mirror those in place for alcohol and tobacco.

Status: Signed Into Law

HB2055 (immunizations; requirements exemption)

Sponsor: Representative Lisa Fink

Stance: Opposed

Summary: This bill would have further broadened the ability of individuals to claim an exception for any vaccine. Arizona law already allows parents to obtain exemptions for their children based on personal beliefs; however, it has been firmly established by the judicial system that employers may enact vaccine requirement policies. Safety standards for vaccinations are already robust with rigorous and transparent monitoring through the FDA and CDC.

Status: Defeated

HB2125 (insurance coverage; hearing aids; children)

Sponsor: Representative Julie Willoughby

Stance: Support

Summary: This important ArMA supported legislation would have required health plans to provide coverage for hearing aids for children, which are crucial for the development and education for children with hearing impairments.

Status: Ongoing

HB2063 (parental notification; school immunization exemptions)

Sponsor: Representative Lisa Fink

Stance: Opposed

Summary: This legislation would have required all communication for school vaccination requirements to include information about exemptions. Information on immunization exemptions is already widely available through the Arizona Department of Health Services website and other channels. The forms could lead to convenience exemptions, which are dangerous for public health.

Status: Defeated

HB2012 (emergency use products; employers; prohibition)

Sponsor: Representative Nick Kupper

Stance: Opposed

Summary: This legislation would have prohibited an employer or healthcare entity from requiring the administration of an emergency use product, eroding their ability to protect their workplace as they deem fit.

Status: Vetoed

HB2257 (DCS; vaccinations; child placement)

Sponsor: Representative Lisa Fink

Stance: Opposed

Summary: This legislation would have prohibited the Arizona Department of Child Services from choosing not to place a child in a foster home based on the vaccine status of other children living in the home. This dangerous legislation would have put vulnerable children at greater risk of infectious disease.

Status: Defeated

HB2707 (vaccination status; unprofessional conduct; policies)

Sponsor: Representative Nick Kupper

Stance: Opposed

Summary: This bill would have prohibited health providers and institutions from refusing to treat an individual based on vaccination status. This bill would put vulnerable individuals at risk for transmission of diseases in healthcare settings and threatens the rights of health providers to refuse service if it would endanger their operations and safety.

Status: Defeated

HB2332 (postpartum health; education; advisory committee)

Sponsor: Representative Julie Willoughby

Stance: Support

Summary: This legislation requires the Arizona Department of Health Services to identify and compile materials regarding maternal mental health conditions and establishes an Advisory Committee on Obstetrics, Gynecology and Maternal Health in Rural Communities.

Status: Signed Into Law

HB2449 (AHCCCS; enrollment verification; presumptive eligibility)

Sponsor: Representative Michael Carbone

Stance: Opposed

Summary: This legislation would have established onerous enrollment verification standards to confirm eligibility that would have expended state resources on administrative redundancies without a return on the investment.

Status: Vetoed

SB1347 (AHCCCS; comprehensive dental care)

Sponsor: Senator TJ Shope

Stance: Support

Summary: This legislation would have expanded preventative dental care for adults insured through the Arizona Health Care Cost Containment System, Arizona’s Medicaid agency.

Status: Ongoing

SB1586 (gender transition procedures; provider liability)

Sponsor: Senator Janae Shamp

Stance: Opposed

Summary: This legislation would have imposed a civil liability on physicians for transition or detransition procedures provided to minors. Arizona has robust medical malpractice statutes that allow for a private right of action for issues related to informed consent.

Status: Vetoed

SB1711 (AHCCCS; obesity treatment; study committee)

Sponsor: Senator David Gowan

Stance: Support

Summary: This legislation establishes a study committee to examine the costs, savings, effectiveness, and health outcomes, including comprehensive obesity treatment for AHCCCS members.

Status: Signed Into Law

Protecting patient care takes more than sheer force. It takes productive relationships with legislators, which begin outside of the Arizona State Capitol. That’s exactly why the Arizona Medical Political Action Committee exists.

ArMPAC’s mission is simple: ArMPAC is Arizona’s most influential physician-led political action committee. By uniting the support of physicians from all specialties, all stages of practice, and across the state, ArMPAC promotes political candidates who prioritize patients and champion the delivery of high-quality care.

ArMPAC fulfills this mission through targeted, meaningful campaign support to physician-friendly candidates on both sides of the aisle. We are not a partisan PAC, and our endorsements are carefully vetted by a diverse board of physicians.

ArMPAC’s IMPACT:

$10,000+ given to over 30 pro-medicine candidates across the state

Powered by contributions from the physician community, ArMPAC builds a foundation on which ArMA’s advocacy efforts can thrive. Help us keep patient care in the hands of physicians by getting involved with ArMPAC today! Learn more at ArMPAC.org

Arizona State Budget

On Friday, June 27, Governor Katie Hobbs signed Arizona’s Fiscal Year 2025-26 budget after months of negotiations, false starts, and heated disagreement.

Though the state’s budget outlook had significantly improved since last year’s $1.4 billion deficit, there was little funding available for new spending. The dynamics of a Republican-led legislature and Democratic Governor made garnering sufficient approval for a bipartisan budget package difficult, to say the least. And, a relatively meager amount of unclaimed funding made it hard to win support across the aisle. However, with the very real possibility of a government shutdown looming on July 1, lawmakers finally compromised on a spending plan and quickly pushed it through the legislative process.

Ultimately, the $17.6 billion spending package passed with significant bipartisan support. The surplus was equally allocated between the House, Senate, and Governor for each to spend on bipartisan priorities. Among other things, the package includes a federally matched $4 million investment in graduate medical education funding, which ArMA’s Advocacy Team and our allies lobbied for tirelessly. While this funding isn’t enough to fix the physician shortage, it is a meaningful step toward a solution and bodes well for future investments.

The budget also fully funds Arizona’s Division of Developmental Disabilities, which was facing a $122 million shortfall, and adds $5 million for secure behavioral health facility capital costs.

Other notable statewide investments included:

$90 million in new spending for public safety

$119 million in new transportation/infrastructure projects

$281 million in new funding for K-12 education

$29 million in new funding for higher education, including $16 million for in-state scholarships

$12 million for new investments in water infrastructure

Tax breaks for certain Arizona residents:

9 Exempted disabled veterans from paying property taxes

9 Increases the business personal property tax exemption from $270,000 to $500,000

9 Increases the deduction for adoption expenses from $5,000 to $10,000.

Broadly, Arizona’s FY 2025-26 was truly a bipartisan budget that proved, once again, that Arizona’s leaders can find common ground.

Advocacy Programs and Collaborations

The 2025 Legislative Session marked the 50th Anniversary of ArMA’s Doctor of the Day program. Our cornerstone program brings licensed ArMA physicians to the Arizona State Capitol during the first 100 regularly scheduled days of the session.

Each day, a physician is on-site to provide medical services and treatment to lawmakers and staff, should it be needed. Participants also meet with their state representatives and key health leaders to discuss the issues physicians face. We also welcome physicians-in-training to shadow the Doctor of the Day, granting them a unique glimpse into the world of physician advocacy.

For 50 years, ArMA’s Doctor of the Day program has demonstrated the unparalleled commitment of Arizona’s physicians and physicians-in-training. Through this one-of-a-kind opportunity, we’re impressing the importance of informed and quality healthcare policymaking on elected officials every year. Thank you to our 2025 participants for another successful year at the Capitol!

We look forward to the program returning in 2026. Registration will open in Fall 2025.

Visit AZmed.org/DoctoroftheDay to learn more.

Established in 2019, the Arizona Healthcare Advocacy Coalition is comprised of various physician-led medical societies representing Arizona, its counties, and physician specialty groups.

AHAC is a collaborative effort to ensure the Arizona medical community is speaking with one voice during the policymaking process. It provides a forum for collaboration between key healthcare stakeholders to advance the health of all Arizonans, mobilize participation, and serve as a network for sharing information.

Visit AZhealthcoalition.org to learn more.

Physicians and physicians-in-training are uniquely qualified to educate lawmakers and inform healthcare legislation. However, while many physicians and those in training are interested in advocating for their patients and their profession, they are often unsure of where to begin.

To address this gap, the Arizona Medical Association developed ArMA’s Advocacy University, a free, three-part educational series on physician advocacy exclusive for members. After graduating from Advocacy University, physicians, residents, fellows, and medical students will have the insight, skills, and confidence to be a formidable advocate for their patients and their profession.

Learn more by visiting AZmed.org/AdvocacyUniversity. Stay tuned for enrollment to open in Summer 2026!

Our Advocacy Team

Legislative & Governmental Affairs Committee

ArMA’s Legislative & Governmental Affairs Committee is comprised of physicians and physicians-in-training representing the diverse nature of Arizona’s physician community. The committee examines issues of concern to physicians, healthcare organizations, and patients that are under consideration by state or federal agencies, licensing boards, the state legislature, and U.S. Congress. The committee is then responsible for establishing ArMA’s position in negotiating or advocating on those issues.

Heidi Tavel, MD, chaired the 2024–25 L&G Committee. ArMA is incredibly thankful for Dr. Tavel’s commitment and responsiveness in leading this important committee.

2024–2025 L&G Members

Heidi Tavel, MD

Chair

Ilana Addis, MD

Gretchen Alexander, MD

Chair of ArMPAC

Miriam Anand, MD

Kariappa Appachu, MD

Dave Baltazar, DO

Alexis Bailey, MD, RFS

Andrew Carroll, MD

Abhineet Chowdhary, MD

Ricardo Correa, MD

Claudine Egol, MD

Katherine Glaser, MD

Jennifer Hartmark-Hill, MD

David Horwitz, MD

Rolf Hultsch, MD

Jason Jameson, MD

President-Elect

Nadeem Kazi, MD

President

Sara Lee-Davisson, MD

Marc Leib, MD

Jane Lyons, MD

Jose Mitjavila, MD

Fatouma Tall, MSS

Robert Orford, MD

Rahul Pannala, MD

Marla Rejbi, DO

Corinna Saldanha, DO

Secretary

Mehrdad Saririan, MD

William Thompson, MD

Susan Whitely, MD

ArMA’s Advocacy Staff

Doug Laher, MBA, CAE, CMP Chief Executive Officer

Doug brings over 15 years of experience in healthcare, association management, and nonprofit leadership. In his role as ArMA’s CEO, Doug focuses on strategically expanding ArMA’s impact by enhancing physician programs, further strengthening the organization’s award-winning advocacy efforts, and fostering a thriving, connected physician community.

Amanda Sheinson Vice President of Government Affairs

Amanda is an accomplished government relations professional with 15 years of experience in Arizona politics. She is responsible for leading and executing ArMA’s advocacy strategy to represent the interests of our physician members at the local, state, and federal levels of government.

Eva Turner Government Relations Associate

Eva provided lobbying support for the organization and managed the Doctor of the Day program. She holds a bachelor’s degree in politics, philosophy, economics, and law. She also holds a master’s degree in econometrics and quantitative economics.

Consilium Consulting

Consilium Consulting is a highly regarded government relations firm bringing invaluable resources and expertise to the table. Consilium boasts decades of experience and intimate knowledge of government processes.

Thank you

...to the organizations that championed Arizona physicians alongside ArMA

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