A special hearing of the Arizona State Senate Health & Human Services Committee is set for Monday, August 18, to address the alarming rise in Medicaid fraud, abuse, and waste across the state.
The special hearing comes in response to the growing reports of fraudulent billing, unnecessary treatment claims, and corrupt referral practices within AHCCCS, Arizona’s Medicaid system. Many of the fraud claims are tied to Residential Treatment Facilities, also known as “sober living homes.”
One particularly egregious case involved Farukh Jara Ali, owner of ProMD, a company operating out of Pakistan. Ali was recently indicted for $650 million in fake Medicaid claims. Additionally, reports regarding Residential Treatment Facilities schemes allege patients were bribed and directed to specific facilities or providers who, in turn, those fraudulently billed Medicaid for services that were either not provided or medically unnecessary.
Particularly troubling, say senators, is the pattern of targeting Native American patients who are promised treatment under but are exploited in schemes that prioritize kickbacks over care.
“We are hearing of too many instances where Arizona’s Medicaid system is being hijacked by criminals, while honest providers, patients, and ultimately all taxpayers, pay the price,” said Committee Chairwoman Carine Werner. “We have an obligation to investigate the systems and processes that have allowed bad actors to commit fraud while good providers are being pushed out of the system, leaving vulnerable populations to suffer. Arizona is among several states affected by a recent nationwide “takedown,” which charged over 300 individuals in coordinated healthcare schemes, costing the state more than $650 million. We must investigate these issues with stakeholders to identify actionable solutions to stop fraud and protect patients throughout Arizona.”
$650 million in fake Medicaid claims.. thefts of TAX DOLLARS