By Jonathan Eberle |
In response to a surge of troubling reports involving fraudulent Medicaid claims and abuse within Arizona’s healthcare system, the Senate Health & Human Services Committee has announced a special hearing scheduled for August 18, 2025, at 2 p.m. at the Arizona State Senate.
Committee Chairwoman Carine Werner (R-LD4) will lead the hearing, which aims to investigate widespread concerns tied to Arizona’s Medicaid agency, the Arizona Health Care Cost Containment System (AHCCCS). Reports point to systemic fraud involving Residential Treatment Facilities, often known as “sober living homes,” where patients were allegedly exploited in elaborate schemes prioritizing profit over care.
One of the most notable cases involves Farukh Jara Ali, the Pakistan-based owner of ProMD, who was recently indicted for submitting over $650 million in fraudulent Medicaid claims. According to investigators, some facilities bribed individuals to attend certain programs, then billed Medicaid for services that were medically unnecessary—or never provided at all.
Chairwoman Werner emphasized the urgency of addressing the issue: “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.”
Werner pointed out that Arizona is not alone. The state was among several affected in a recent nationwide healthcare fraud “takedown” that led to charges against more than 300 individuals. The total cost to Arizona: more than $650 million.
The upcoming hearing will bring together key stakeholders to examine what led to these breakdowns and explore policy reforms to strengthen oversight and accountability within AHCCCS. Lawmakers hope the session will also generate bipartisan momentum to protect the integrity of healthcare services and better safeguard Arizona’s most vulnerable populations.
“This isn’t just about money,” Werner said. “It’s about ensuring our healthcare system isn’t exploited at the expense of people who truly need help.”
The August 18 hearing is open to the public.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
