Shifting Medicaid regulations prompt healthcare leaders to advocate for collaboration
The future of healthcare in Alaska is undergoing significant changes, as the state prepares for the implementation of the OB3 legislation, also known as "One Big, Beautiful Bill." This law outlines how Medicaid will operate beginning in 2026, and its impacts may be far-reaching for Alaskans.
Currently, the Alaska Medicaid program covers approximately one in three Alaskans. As the state gears up for these changes, key figures in Alaska's healthcare industry are expressing concerns and hopes for the future.
Emily Ricci, affiliated with the Alaska Department of Health and Social Services, emphasizes the importance of collaboration and teamwork in navigating these changes. She believes that the ability of people to work together towards a common goal is crucial for the success of Alaska's healthcare industry.
Shelley Ebenal, CEO of Foundation Health Partners, calls for immediate action to improve Alaska's healthcare system. She cites potential financial instability of hospitals like Fairbanks Memorial Hospital as a pressing concern. Ebenal urges all parties to collaborate to leverage the funds from the OB3 legislation to improve Alaska's healthcare system.
Jared Kosin, president and CEO of the Alaska Hospital & Healthcare Association, shares significant concerns about the potential impacts of the OB3 legislation on providers. However, he acknowledges the need to look ahead and find opportunities for change, describing the current sentiment towards the healthcare system as being "Burn it down."
The federal omnibus spending bill passed on July 4, 2025, aims to reduce Medicaid spending by nearly $900 billion over the next decade and redirect $50 billion towards rural healthcare. The Alaska Department of Health is considering how it can leverage AI-driven tools as it updates its systems to meet these new challenges.
The department has been rebuilding after the COVID-19 pandemic, a cyberattack in 2021, and a split from the Alaska Department of Health and Social Services in 2022. In recent years, the department has been dealing with worker attrition, hiring lags, and a backlog of work.
To address these issues, the department is looking at how the healthcare system and patient needs have changed in Alaska since 2019 or 2018. Ricci, the state Medicaid director and deputy commissioner of the Alaska Department of Health, expresses optimism that the coming reforms might improve Alaska's healthcare landscape.
In a recent conference in Anchorage, state health officials, private operators, and representatives from the Alaska Hospital & Healthcare Association gathered to discuss the future of Alaska Medicaid. Kosin notes that state health officials and private operators have united and given each other space and grace during the COVID-19 pandemic.
Ricci believes building on long-term relationships will help Alaska's healthcare industry adapt to the changes brought by the new federal Medicaid rules. She expresses optimism that the funds from the OB3 legislation can be used to improve Alaska's healthcare system and meet the challenges that lie ahead.
As Alaska prepares for these changes, the focus remains on collaboration, adaptability, and a shared commitment to improving the state's healthcare system for all Alaskans.
