Scripps has covered the issue of fraudulent sober living homes and AHCCCS fraud in our state and the toll advocates say it has taken on native american communities.
Now, a new class action lawsuit has been filed against the State of Arizona accusing the state of knowing about fraudulent activity for years but failing to act.
“They weren’t patients, they were dollar signs,” said attorney Dane Wood. “We’ve heard stories exactly using those words. There was no sober living about any of this.”
“These are not sober living homes, they are fraudulent flop homes,” said advocate Reva Stewart with Turtle Island Women Warriors. “Nobody wants to take accountability for them. And I will be here until somebody says I’m sorry.”
The complaint alleges the fraudulent bills paid by AHCCS grew from $43 million in 2020 to $2.8 billion in 2023.
“The state wasn’t vetting the bills they were submitting and turning around and paying for them. Well once they get payment on the first one, they know they can do it the second time, third time, tenth time, and get away with it. So we’re not talking about one provider, hundreds and hundreds start doing the same thing,” Wood said.
The complaint is a class action representing approximately 7,000 Native Americans.
“2,000 at least of those people have even gone missing or died,” said attorney John Brewer.
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Attorneys say the state eventually shut down certain providers, but that left many vulnerable people on the streets, susceptible to being targeted again.
“[Recruiters] will recruit natives and then the natives will get shipped to Utah, California Texas and we get phone calls of that all the time,” Brewer said.
“I see it on a daily basis. I hear it on a daily basis. I have families reaching out to me looking for loved ones on a daily basis,” Stewart told Scripps.
The Attorney General’s office told Scripps they have no comment on the lawsuit.
AHCCCS and ADHS provided a joint statement to Scripps:
“AHCCCS and ADHS are unable to comment on the substance of pending litigation. Addressing behavioral health fraud remains at the forefront of our efforts. Governor Hobbs and State Agencies have acknowledged the pain and suffering associated with behavioral health fraud and the significant impact on Tribal nations in Arizona. The Hobbs administration has taken swift action against the fraudulent providers, prioritized an emergency humanitarian response, and continues to prioritize operational reform in collaboration with law enforcement and Tribal partners.
Our focus remains protecting the populations we serve, ensuring that Arizonans receive the vital care and services they need, and eliminating fraud.”
