Gov. Katie Hobbs and others say fake health care providers have defrauded the state out of hundreds of millions of dollars. The schemes allegedly target Native American communities.
Officials say for nearly three years more than 100 treatment centers in the Phoenix area have fraudulently billed Arizona’s Medicaid system for services they didn’t deliver.
The providers often lure Native Americans from reservations who’re experiencing homelessness or have mental health or substance abuse problems. The would-be patients are frequently held against their will and rarely given the promised treatment.
The U.S. Attorney’s Office and the FBI have been investigating.
"These individuals are targeting Native Americans because there’s a lower threshold in order to bill for behavioral health services. So, we’re just seeing a mismatch between what’s actually happening and what is supposed to happen," said FBI Special Agent Antoinette Ferrari in previous interview with KNAU.
At a press conference Tuesday, Hobbs called the situation a “humanitarian crisis” that’s believed to have contributed to the epidemic of missing Indigenous people.
Attorney General Kris Mayes said the providers even filed claims using the names of dead people or young children who weren’t being treated.
"I don't think it is too much to say that this is one of the biggest scandals in the history of the state of Arizona when it comes to our government," said Mayes at the press conference. She also called the schemes a "stunning failure of government."
Mayes said 45 indictments have been handed down so far and about $75 million have been recovered. Hobbs said the providers have been cutoff from receiving payments and other systemic reforms will be put in place.
A statewide hotline has been set up to report missing people at 2-1-1. Many victims are believed to be members of the Navajo Nation, and the tribe will open a command center in the valley to assist victims and families.
