House Republican leaders have expressed concern after discovering that Dr. Theresa Costales, the Chief Medical Officer of Arizona’s Medicaid agency, AHCCCS, is serving with an expired medical license. Her license was due for renewal on April 9, 2025, but it was not renewed. Despite this, she continues to advise on state health policies affecting over 2 million Arizonans.
According to the Arizona Medical Board, Dr. Costales’ license remained active only during a statutory grace period that ended on August 9, 2025. After this date, her license became fully expired. The Chief Medical Officer has significant responsibilities, including advising on clinical policies and serving as an expert witness in legal matters for the state.
Speaker of the House Steve Montenegro commented on the situation: “A lapse like this should never happen in a healthcare agency responsible for millions of people.” House Majority Leader Michael Carbone added that verifying a medical license is basic and its oversight at such a high level is unacceptable.
House Majority Whip Julie Willoughby raised concerns about decisions made under Dr. Costales’ leadership without a valid license: “You cannot have a Chief Medical Officer without an active license—it’s that simple.” She questioned whether recent reviews were overseen by someone whose license had already expired and how families can trust those decisions.
Speaker Pro Tempore Neal Carter criticized Governor Katie Hobbs’ administration for failing to ensure competence and accountability in state government: “This isn’t a small oversight—it undermines public confidence in one of Arizona’s largest healthcare agencies.”
AHCCCS oversees healthcare services for more than 2 million residents in Arizona. Comparatively, other state departments like the Arizona Department of Corrections require their Chief Medical Officer applicants to hold an active medical license as a pre-employment condition.
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