AHCCCS Receives Federal Approval to Cover Traditional Healing Services at Qualifying Tribal Health Facilities

(PHOENIX – Oct. 17, 2024) – In partnership with leaders of Tribal nations, the Arizona Health Care Cost Containment System (AHCCCS) has received approval from the Centers for Medicare and Medicaid Services (CMS) to cover traditional healing services provided through Indian Health Service (IHS) and Tribally-operated health facilities.

This federal approval represents a critical first step toward allowing traditional healers to bill for services under Medicaid.

“Federal approval of coverage for traditional healing services in Arizona and multiple other states represents a watershed moment in recognizing the importance of culturally competent care,” said Carmen Heredia, Director of AHCCCS. “As we continue this work in partnership with Arizona’s Indigenous communities, we look forward to the positive impact these services will have on the health and well-being of our members.”

This action is the culmination of nearly a decade of work and partnership. AHCCCS submitted the nation’s first-ever request for traditional healing reimbursement through Medicaid in 2015 and again in 2020. Throughout this process, AHCCCS has engaged traditional healers representing Tribal nations throughout the state. Other states including New Mexico, California, and Oregon have since joined in the pursuit of covering traditional healing services through their respective Medicaid programs.

“At the core of Native communities, traditional healing practices have long been essential to health and well-being,” said Terrilyn Chee, co-chair of the AHCCCS Traditional Healing Workgroup and Director of Revenue Generation for the Tse’hootsooi’ Medical Center in Fort Defiance, Ariz. “These culturally rich practices provide a comprehensive approach to health, seamlessly blending the physical, mental, and spiritual dimensions of well-being.”

The CMS approval will allow AHCCCS to establish a process and policies for reimbursement of services provided by traditional healers employed by or contracted with an Indian Health Services (IHS) or Tribally-operated health center (commonly known as a “638 facility”). Additionally, traditional healers employed by or contracted with an Urban Indian Organization may provide services through a care coordination agreement with an IHS/638 facility.

Only AHCCCS members who are eligible to receive services through an IHS or 638 facility will be able to receive traditional healing services.

Once AHCCCS receives the necessary approval from the Arizona legislature, the agency will establish a timeline for implementation and notify members and providers of the effective date. Answers to frequently asked questions are available on the agency’s website.

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