By Jonathan Eberle |
State Senator Carine Werner is escalating her oversight push against Arizona’s Medicaid agency, AHCCCS, after a tense committee hearing revealed what she called “catastrophic failures” in the state’s health care system.
As chair of the Senate Health and Human Services Committee, Werner convened an October 1 hearing that uncovered widespread fraud, lapses in oversight, and significant coverage disruptions for vulnerable Arizonans. Lawmakers heard testimony that outlined nearly $2.8 billion in estimated fraud, more than 140,000 unenrollments since September 2024, and deep impacts on Native American communities.
“This is about far more than numbers on a page—it’s about lives shattered and trust broken,” Werner said after the hearing. “Families lost coverage, providers were driven out by retaliation and red tape, and patient brokers were allowed to exploit Arizonans in need. We cannot allow the Governor’s state agencies to hide behind vague answers.”
Witnesses described fraudulent brokers shifting patients from Medicaid into federally subsidized marketplace plans, leaving families at risk of losing access to necessary care. Providers also reported delayed or denied payments that have forced some to close their practices, while law enforcement confirmed that just 91 arrests have been made despite widespread patient brokering schemes.
The committee also heard that Native American communities have been disproportionately affected by lapses in Medicaid coverage, with families struggling to find replacement providers or navigate bureaucratic hurdles.
In response, the committee issued a formal list of follow-up questions to AHCCCS. Lawmakers are seeking precise information on how many licensed behavioral health providers are actively serving patients, what actions are being taken to restore access to care in Native American communities, how much taxpayer money has been lost and recovered, and whether AHCCCS has held staff accountable for oversight failures.
Werner stressed that the requests are non-negotiable. “Governor Hobbs and AHCCCS owe Arizona’s taxpayers and families straight answers. The days of vague promises are over. This committee expects deliverables that prove action is being taken.”
The committee has given AHCCCS 30 days to provide a full set of responses and supporting data. A follow-up hearing is scheduled within 45 days, where lawmakers will publicly review the agency’s progress.
“Arizona deserves a health care system that protects the vulnerable instead of enabling fraud,” Werner said. “We will keep pressing until every loophole is closed, every fraudulent actor is held accountable, and every Arizonan can access care without fear of exploitation.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
