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Officials crack down on fraudulent Medicaid schemes that targeted Native Americans

Gov. Katie Hobbs stands with Arizona tribal leaders and law enforcement officials at a press conference on May 16, 2023 to announce actions taken against health care service providers who allegedly defrauded the state out of hundreds of millions of dollars over the last three years.
Arizona Governor's Office
Gov. Katie Hobbs stands with Arizona tribal leaders and law enforcement officials at a press conference on May 16, 2023 to announce actions taken against health care service providers who allegedly defrauded the state out of hundreds of millions of dollars over the last three years.

Gov. Katie Hobbs has announced actions against more than a hundred alleged fraudulent Medicaid providers in the state.

Officials say the behavioral health centers defrauded Arizona’s Medicaid program out of hundreds of millions of dollars over nearly three years by billing for addiction and mental health services that never occurred.

According to law enforcement, the providers often targeted Native Americans who were lured to the facilities but never given treatment and often prevented from leaving or contacting family members.

Many were experiencing homelessness and considered missing by authorities after they were taken to the facilities.

Attorney General Kris Mayes says her office has brought 45 indictments and recovered $75 million from the schemes.

She and Hobbs said the service providers have been cut off from receiving payments and several reforms of the state’s Medicaid program will be put in place to stop future fraud.