Arizona AG Unveils $2B Medicaid Fraud Targeting Native Communities
PHOENIX — Attorney General Kris Mayes has revealed that approximately $2 billion may have been embezzled from Arizona’s Medicaid program (AHCCCS) in a sweeping fraud scheme targeting Native American communities. The funds were allegedly funneled to fraudulent providers, leaving many victims without the necessary care.
Mayes’ announcement follows the resignation of AHCCCS director Carmen Heredia, who stepped down rather than face a Senate confirmation hearing. Mayes criticized Republican lawmakers for their handling of the confirmation process, emphasizing that their actions hinder efforts to combat fraud and protect vulnerable populations.
The attorney general highlighted shocking cases, including an instance where a provider billed for alcohol rehabilitation services for a four-year-old. To date, her office has issued over 100 indictments, secured 25 convictions, and recovered around $100 million.
Republican Sen. Jake Hoffman, who oversees confirmations, previously described the management of the crisis as "incredibly disturbing." Mayes has proposed over 30 recommendations to prevent future fraud, with some implemented under Heredia’s leadership. The absence of a new director raises concerns about continued oversight and support for legitimate tribal sober living providers.
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