By Jonathan Eberle |
The Arizona Senate Health & Human Services Committee will hold a special hearing on Medicaid fraud this coming Monday, Aug. 18, 2025, at 2 p.m. at the Arizona State Senate, following weeks of mounting concern over waste and abuse in the state’s healthcare system.
Committee Chairwoman Carine Werner (R-LD4) will lead the session, which will examine allegations of systemic fraud within the Arizona Health Care Cost Containment System (AHCCCS). Reports have tied the abuse largely to Residential Treatment Facilities—often called “sober living homes”—where patients were allegedly exploited in schemes designed to maximize profits rather than provide care.
One of the most prominent cases involves Farukh Jara Ali, the Pakistan-based owner of ProMD, who was indicted for submitting more than $650 million in fraudulent Medicaid claims. Investigators allege that some facilities bribed individuals to attend certain programs, then billed Medicaid for unnecessary—or entirely unprovided—services.
“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.”
Arizona was among several states targeted in a recent nationwide healthcare fraud “takedown” that led to charges against more than 300 individuals. The estimated loss to Arizona alone exceeds $650 million.
The Aug. 18 hearing will bring together lawmakers, health officials, and other stakeholders to review the breakdowns that allowed the fraud to occur and consider policy reforms aimed at tightening oversight and accountability within AHCCCS. The session is open to the public.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
