State Addressing Fraud Against the Medicaid System

On May 16, Governor Hobbs held a press conference with the Arizona Health Care Cost Containment System (AHCCCS), the Attorney General, tribal leaders, and law enforcement announcing actions the State is taking to stop fraud against the Medicaid system and exploitation of AHCCCS members.

In her remarks, Governor Hobbs stated that they have identified over 100 providers that have defrauded the State millions of dollars. She said this humanitarian crisis has impacted Indigenous people disproportionally. The fraudulent providers have targeted vulnerable individuals with false promises and people have then been left at facilities without proper behavioral health treatment and at times no access to the outside world. The State is still investigating the level of fraud, but they estimate thousands of people have been impacted.

Governor Hobbs announced that the State is developing a comprehensive plan to investigate and prosecute bad actors and they will implement systemic reforms in the AHCCCS billing system. The State has also launched a dedicated hotline that people can use to report missing loved ones or fraudulent providers. According to Governor Hobbs, this is only the first step to eradicate fraud in the system.

Recently, we’ve heard a lot about fraudulent sober living homes and are glad that the State, AHCCCS, and Arizona Tribal leaders are taking steps to investigate the issues and help people who have been significantly impacted by opportunistic entities. As part of the behavioral health system, The Haven stands ready to aid those affected by provider closures. If you know anybody who has been impacted by this issue, you can call the dedicated hotline at 2-1-1 (press 7).

Please see the full press conference below. The video starts at The remarks start at 16:30.