Justice Department Probes $2.5B Medicaid Fraud Scam Targeting Native Americans in Arizona

According to FOX 10 Phoenix, the U.S. Department of Justice is now taking over the investigation into the enormous Medicaid fraud case in Arizona that took advantage of Native Americans who were struggling with addiction. Fraudulent operators are accused of siphoning off an estimated $2.5 billion by invoicing the state’s Medicaid program, AHCCCS, for services that never existed.

Many members of the Native American community have received letters from the DOJ regarding the disclosure of their personal information during investigations, indicating that they have been the ones most affected by the scam. Although Jamie Kee has never been to such treatment centers, FOX 10 Phoenix reported that Kee’s AHCCCS ID was “identified in connection with an investigation of potential billing fraud connected with substance abuse treatment.” In another occasion, an unnamed lady claimed that even though her small child had never gotten treatment for substance abuse, he had received a similar letter.

Attorney General Kris Mayes of Arizona launched a $6 million grant program to help impacted tribes and combat the repercussions. The fund is intended to give tribal nations up to $500,000 to help with “compensation, remediation, and supportive housing for those affected,” according to an Attorney General’s Office release that KOLD television reported. The money will come from Arizona’s Anti-Racketeering Revolving resource, which is a resource that is usually used to combat organized crime and fraud.

Even though the DOJ investigation is still underway, several Arizonans, like Kee, told FOX 10 Phoenix that she was frustrated by AHCCCS’s unclear communication and that she was given “the runarounds.” As a result of the fraud’s intricacy and depth, AHCCCS has suspended several organizations while a comprehensive law enforcement investigation continues to uncover the full scope of the billing schemes.

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