Alaska Embarks on $272 Million Rural Health Transformation

Opinion piece outlines a vision for improving access to care across the state.

Feb. 1, 2026 at 12:55pm

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In an opinion piece, Jared Kosin, with over a decade of experience working in Alaska's health care system, offers a vision for how the state can transform its rural health care system using $272 million in new funding. Kosin argues that the key to transformation is improving access to care, particularly for the small population that drives the majority of Medicaid spending due to chronic conditions. He highlights several initiatives across the state, from patient-centered medical homes to dental services at nursing homes, that could help increase access and improve health outcomes. Kosin also notes that Alaska is well-positioned for this change, with strong support from its U.S. Senators and a dedicated team at the state's Department of Health.

Why it matters

Alaska's health care system has faced significant challenges in recent years, and this $272 million in funding represents a major opportunity to enact meaningful transformation. Improving access to care, especially for those with chronic conditions who account for the majority of Medicaid spending, could lead to better health outcomes and more sustainable costs for the state's health care system.

The details

The $272 million in funding for the Rural Health Transformation Program will be used to implement a variety of initiatives across Alaska aimed at improving access to care. These include investments in patient-centered medical homes and addiction medicine in Fairbanks, directed primary care in Petersburg, population health on the Kenai Peninsula, dental health services at nursing homes in Anchorage, and behavioral health respite in Kotzebue. The goal is to address the social determinants of health and mitigate chronic conditions that drive the majority of Medicaid spending in the state.

  • In 2024, the average Medicaid spending per person without a chronic condition was $4,581, while the average spending per person with one or more chronic conditions was $26,499 - six times higher.
  • The $272 million in funding for the Rural Health Transformation Program was secured in 2026.

The players

Jared Kosin

An individual with over a decade of experience working in different facets of Alaska's health care system, who is offering a vision for how the state can transform its rural health care system using the new $272 million in funding.

Dan Sullivan

A U.S. Senator from Alaska who helped secure the $272 million in funding and continues to press the Centers for Medicare and Medicaid Services to prioritize the needs of the state.

Lisa Murkowski

A U.S. Senator from Alaska who helped secure the $272 million in funding and demonstrated leadership by voting to extend the enhanced premium tax credits relied upon by many Alaskans and small businesses to purchase health insurance.

Heidi Hedberg

The Commissioner of the Alaska Department of Health, who has led a relentless effort to outperform every state in the rural health transformation sphere and produced a high-caliber application that received the second-highest funding award from the Centers for Medicare and Medicaid Services nationwide.

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What they’re saying

“While I have been saying for years that the best path to transformation is addressing socioeconomic factors and social determinants of health, mitigating and managing chronic conditions is meaningful progress that clearly can help improve health care spending over time.”

— Jared Kosin

What’s next

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The takeaway

This $272 million investment in rural health transformation represents a significant opportunity for Alaska to address longstanding challenges in its health care system. By focusing on improving access to care, particularly for those with chronic conditions, the state can take meaningful steps towards a more sustainable and equitable health care future.