In a legal move that underscores the deepening consequences of behavioral health fraud in Arizona, a class-action lawsuit has been initiated against the State, spotlighting the stark toll on Native American communities; Fox10 Phoenix reports that the legal complaint alleges the fraudulent billing within Arizona’s Medicaid system, known as the Arizona Health Care Cost Containment System (AHCCCS), reached a staggering $2.8 billion for services that were never provided, leading to dire consequences including injuries, deaths, drug addictions, and homelessness for thousands of Native Americans.
According to the lawsuit detailed in the Fox10 Phoenix coverage, the plaintiffs argue that the State knew massive fraud was occurring since at least the summer of 2019 yet failed to intervene, the resulting crackdown on facilities believed to be involved only exacerbating the humanitarian crisis leaving vulnerable Native Americans even more at risk, according to attorney John Brewer, "They were treated like chattel, more or less," Brewer stated, indicating neglect of human dignity.
Another facet of the scandal is the inter-state dimension of the fraud, where individuals were transported across state lines from places like New Mexico to exploit Arizona’s Medicaid benefits, as recounted by attorney Brook Laskey in an interview with Fox10 Phoenix. Such operations have been linked to increased addictions and displacement.
Meanwhile, as per ABC15, lawyer Dane Wood decried the inhuman perception of suffering individuals, stating, "They weren’t patients, they were dollar signs," while advocate Reva Stewart condemned the lack of responsibility taken for so-called 'sober living homes' which, in reality, amounted to fraudulent operations.
Strikingly, the class action represents around 7,000 Native Americans, with at least 2,000 individuals missing or dead due to the sober living crisis, this multiplicity of personal tragedies highlights the scope of the issue, with the suit alleging gross negligence and wrongful death, seeking damages that exceed $300,000. The state agencies involved, AHCCCS and the Arizona Department of Health, have yet to comment on the pending litigation, emphasizing their commitment to addressing fraud, as stated by ABC15, "Addressing behavioral health fraud remains at the forefront of our efforts," the agencies declared.
