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AHCCCS halts payments to 100 providers as officials allege multi-million-dollar scam targeting Native Americans

Gov. Katie Hobbs, flanked by Attorney General Chris Mays, said Tuesday that the state will not provide care services to Native Americans, whether they need it or not, by operators of frugal housing. He said he was the victim of a large-scale fraud that was caused. (Capitol Media Service photo by Howard Fisher)

The Arizona Health Care Cost Control System, better known as AHCCCS, has stopped paying more than 100 health care providers suspected of victimizing thousands of Native Americans and defrauding the state of hundreds of millions of dollars, officials say. announced on Tuesday.

Fraudulent sobriety housing operators are extorting taxes from taxpayers by recruiting Native Americans into institutions and charging them for treatment they weren’t provided, according to state, federal, and tribal officials. It is said that

Rather than providing legitimate medical care, rogue facilities often give tribe members addiction and drug problems to keep tribe members under control, and the facilities are run by Governor Katie Hobbs and Arizona Attorney General. Officials were working, including Chris Mays, Navajo Attorney General Ethel. Branch said at a press conference.

“For years, these providers have allegedly defrauded the state of millions of dollars while causing a massive humanitarian crisis that disproportionately affected tribal communities in Arizona,” Hobbes said. .

“Many of these predatory behavioral health facilities serve and continue to serve the most at-risk populations,” said Martin Harveer, president of the Salt River Pima Maricopa Indian Community. But it just makes us richer,” he said.

The plan is a known one that law enforcement and tribal leaders have struggled to contain in recent years, despite open exploitation.

Operators and affiliates of fake medical centers offer to pick up homeless, low-income, lonely, or drunk people and provide access to food, housing, and care. With a promise, they may be transported to a residential center. Perpetrators target Native Americans both on reservations and in urban areas like Phoenix.

Victims’ family and friends often file missing persons reports without knowing what happened. Some have died in institutions, others have been severely abused.

“For the Hopi, what we’ve been through has become too brazen, and we call it ‘White Van Syndrome’. Predatory recruitment is taking place directly at our IHS (India Health Service) facility,” said Hopi President Timothy Nubangyaoma.

Hobbes said thousands may have been harmed by fraudulent health care providers, but the practice of “ghost billing” makes it difficult to determine how many were actually harmed. said difficult.

Mays said the abuses continued for years due to “an astonishing failure of the government”.

“I think it’s fair to say that this is one of the biggest scandals in Arizona history…our office estimates the amount at hundreds of millions of dollars, but we’re going to put that down. It could exceed that,” the attorney general said.

AHCCCS Director Carmen Heredia said state Medicaid agencies will conduct financial audits to review potentially fraudulent payments. AHCCCS suspended payments to 102 providers on Monday. information on the agency’s website. State law requires us to stop payments to providers when we receive “credible allegations of fraud.”

Heredia called the systematic abuse “egregious” and said AHCCCS would take steps in the future, including scrutinizing certain providers more closely and paying particular attention to claims that differ from national guidelines.

The agency suspended or terminated payments to an additional 49 providers earlier this year, and has suspended or terminated payments to a total of more than 200 providers since the end of 2019. Names of providers suspended this week include Pinetop Behavior Health, Embark Wellness Center and Bright Beginnings. Counseling center. ”

Mays suggested that his office intends to take the matter further by prosecuting those responsible for the abuse. Already, 45 cases have been indicted and $75 million has been seized or recovered, she said.

Branch of Navajo Nation AG said it is launching a program dubbed “Operation Rainbow Bridge” to provide assistance for victims of the scheme.

“We are here to receive relatives and ensure a smooth transition to licensed facilities where they are receiving the services they believed they would receive,” Branch said.

Authorities have also set up a 2-1-1 hotline for victims to get help and transportation home.

A question that went unanswered on Tuesday was why the abuse has continued for years, even though some law enforcement officers are aware of the abuse. Mays said attorneys at the AG firm uncovered abuse cases and raised concerns with AHCCCS, but suggested that the former attorney general and governor did not do enough to bring the matter to light. Stated.

Mayes, Hobbes, AHCCCS, Fraud
Backed by tribal leaders, Attorney General Chris Mays on Tuesday revealed details of a large-scale fraudulent activity in billings to Arizona’s Medicaid program, the Arizona Health Care Cost Control System. (Capitol Media Service photo by Howard Fisher)

“The previous administration was … driving while staying there,” she said.

Mays noted that AHCCCS payments for ambulatory behavioral health services grew rapidly, ballooning from $53 million in 2019 to $668 million in 2022.

Heredia, who took over as AHCCCS director earlier this year, said he did not know when AHCCCS officials first became aware of the issue, adding: “It’s under investigation.”

Democratic Coal Mine Mesa Senator Teresa Hattersley earlier this year proposed a bill that would add rules for transportation to behavioral health facilities and require families to be notified of those receiving care. However, the two bills were never considered in the Senate.

In an interview on Tuesday, Mr. Hatersley said he decided not to pursue action because after conversations with AHCCCS officials he believed it would be better to address the issue “from a rule-making perspective.”

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