There's been a crackdown on massive Medicaid fraud in Arizona. What's next?
More than 300 \ The Arizona state has been cracking down on Medicaid fraud, with at least $2.3 billion allegedly made through fake rehab programs targeting Indigenous communities. Scammers posed as legitimate workers or counselors for sober living communities in Phoenix, posing as individuals with drug or alcohol consumption, and convincing them to sign up for the Arizona Health Care Cost Containment System (AHCCS). These accounts would be billed for alleged mental health treatment or addiction rehabilitation, but these treatments were never provided. Victims were left stranded in the Valley, blackmailed, and some even lost their lives in these fake sober living homes. Governor Katie Hobbs and Attorney General Kris Mayes called the fraud "tragic" and "outrageous".
Published : 10 months ago by , The Arizona Republic in Politics Health
There's been a crackdown on massive Medicaid fraud in Arizona. What's next?
At least $2.3 billion has been milked from Arizona taxpayers since 2019 in a shocking fake rehab program that mainly targeted Indigenous communities.
Scammers posing as legitimate workers or counselors for sober living communities in Phoenix would patrol areas where Native Americans gathered to buy and consume alcohol. They would then pick up people who were intoxicated by drugs or alcohol and take them to Phoenix. Once there, they'd have them sign up for the Arizona Health Care Cost Containment System, or AHCCS. Once signed up, the victims would have their AHCCS accounts billed for alleged mental health treatment or addiction rehabilitation. But none of these treatments were ever provided.
But the fraud cut deeper than just loss of money. Victims found themselves stranded in the Valley, blackmailed and with no real support. Some even lost their lives in these fake sober living homes.
"For years, these providers have allegedly defrauded the state of millions of dollars while creating a large-scale humanitarian crisis that disproportionately affects Arizona’s tribal communities," Gov. Katie Hobbs said at a press conference on May 16, 2023.
"This is tragic," in the same press conference Attorney General Kris Mayes added. "What has happened is tragic and outrageous. And, and I’ll just speak for myself as the attorney general of this state, I believe the state of Arizona owes our tribal nations an apology."
In this episode of The Gaggle, host Mary Jo Pitzl sits down with the reporters who covered the story: Stephanie Innes, Arlyssa Becenti and Richard Ruelas.
Listen to The Gaggle on your favorite podcast app or stream the full episode below.
Read the episode transcript here. Please note that there might be slight discrepancies due to the AI used to transcribe the conversation.
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Topics: Fraud, Corruption