by Jonathan Eberle | Aug 20, 2025 | News
By Jonathan Eberle |
Lawmakers on the Arizona Senate Health and Human Services Committee held a tense hearing Monday as state officials faced questions over one of the largest Medicaid fraud scandals in state history, a scheme that exploited the American Indian Health Program and cost taxpayers an estimated $2.8 billion.
Committee Chair Sen. Carine Werner (R-LD4) opened the hearing by describing the fraud as “staggering” and said it exposed major lapses in licensing, monitoring, and fiscal safeguards. She noted that while corrective actions have been taken, the state’s response has sometimes harmed legitimate providers through delayed payments and abrupt regulatory shifts.
Officials from the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid agency, outlined how fraudulent providers recruited vulnerable Native Americans into unlicensed sober living homes. Investigators reported that some individuals were lured with alcohol or drugs, their Medicaid identification numbers used to bill the state for services never provided. In many cases, patients were moved repeatedly between facilities, deprived of food and basic necessities, and in some instances locked inside rooms. The schemes often involved “ghost billing,” duplicate charges, and shell companies.
Marcus Johnson, a deputy director at AHCCCS, told senators the abuse centered on the American Indian Health Program, a fee-for-service system that was exploited between 2020 and 2023. Spending through the program jumped from $84 million to $372 million in just three years, with average monthly costs per patient tripling. Johnson said the agency has since suspended payments to 327 providers and instituted stricter verification of tribal status to prevent non-eligible individuals from being enrolled.
Inspector General Vanessa Templeman detailed the human toll of the fraud. Her teams encountered patients living out of trash bags, denied medical choice, and stripped of personal belongings by facility operators. “Most disturbingly,” she said, “we have seen patients denied informed consent and locked in unsafe conditions.” Templeman emphasized her office has referred multiple cases to law enforcement and continues to work seven days a week investigating suspected abuse.
In response, AHCCCS described reforms that include pre-payment claim reviews, new documentation requirements, temporary provider enrollment moratoriums, and technology upgrades designed to detect suspicious billing patterns more quickly. Officials said the agency has fielded more than 36,000 calls through a dedicated victim hotline and provided emergency lodging to thousands displaced by fraudulent operators.
Despite these efforts, lawmakers pressed for answers on accountability. Chair Werner repeatedly asked who signed off on payments, including $650 million allegedly funneled to an individual in Pakistan. Johnson declined to provide specifics, citing ongoing litigation. Senators voiced frustration, with Werner warning that unanswered questions were unacceptable to taxpayers, providers, and patients still suffering the consequences.
Some members also raised concerns about the impact of heightened scrutiny on legitimate behavioral health providers. Senator Shope noted that reimbursement rates have not been updated in a decade, even as costs have risen, and questioned whether the appeals process for suspended providers is fair. AHCCCS officials maintained that due process is in place, pointing to 104 suspensions that were later rescinded after providers demonstrated compliance.
As the hearing closed, Werner pledged continued oversight, stressing that Arizona must both restore public trust and ensure that fraud prevention measures do not destabilize access to care. “We owe it to the people of Arizona,” she said, “to break the cycle of harm and build a behavioral health system that is transparent and resilient.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jun 28, 2025 | News
By Ethan Faverino |
Dr. Theodore Cooke, former General Manager for the Central Arizona Project (CAP), has been nominated as Commissioner of Reclamation for the Department of Interior under the Trump administration.
Senate Republicans across the state are applauding Dr. Cooke’s nomination.
Dr. Cooke brings over two decades of experience from his career with the CAP, where he played a crucial role in managing Arizona’s water delivery systems to meet the state’s critical agricultural and municipal needs.
In 2022, Dr. Cooke was nominated by Senate Republicans to serve as a Board Member of Arizona’s Water Infrastructure Finance Authority (WIFA). In this role, he contributed to the strategic financing and development of water infrastructure projects, enhancing Arizona’s defense against water shortages.
“Not only does Arizona provide national benefits from our economy, but we also have a pool of talent in water management professionals,” said Senate President Pro Tempore T.J. Shope, Chairman of the Senate Natural Resources, Energy & Water Committee. “Dr. Cooke is thoughtful, has a history of collaboration, thinks outside the box to formulate solutions, and has a track record of finding a consensus among all parties at the table. This is why he was appointed by the Arizona Senate to serve on WIFA. Dr. Cooke is exactly who the Department of Interior needs and will be more aggressive in facilitating an agreement among the seven Colorado River Basin States on water allocations, as he did with negotiating Arizona’s entrance into the Drought Contingency Plan.”
If the nomination is confirmed, Dr. Cooke will be the main federal official overseeing the seven Colorado River states through negotiations over the shrinking river’s water supply. His leadership will be crucial as these states face a 2026 deadline to agree on water cutbacks. If there is no consensus between the states, the federal government is ready to intervene and make those decisions.
As Commissioner, Dr. Cooke is set to drive transformative water management solutions, securing sustainable supplies for future generations and reinforcing economic strength through the Colorado River Basin.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Jun 19, 2025 | News
By Jonathan Eberle |
Arizona Senate Republicans introduced a new state budget proposal Monday that aims to deliver a balanced fiscal plan while investing in public safety, education, infrastructure, water, and public health — all without raising taxes.
Senate leaders emphasized that their budget reflects bipartisan priorities and presents a path forward to avoid a looming government shutdown.
“This is a bipartisan budget the Republican majority can fully support and the governor will sign,” said Senate President Warren Petersen. “We are protecting the interests of Arizona by boosting pay for public safety personnel and increasing public safety resources to support safer communities.”
Petersen added that the proposal includes key investments in transportation and infrastructure, with a focus on road projects that support economic growth. The budget also addresses water security and enhancements to Arizona’s public health system.
“The governor has been adamant she will veto the House budget,” said Senate Appropriations Chairman John Kavanagh. “With the possibility of a government shutdown in a matter of days, we must move forward with our conservative spending plan, and we’re calling on our colleagues in both chambers to support it.”
Senate President Pro Tempore T.J. Shope offered a blunt assessment of the House proposal, describing it as a “fantasyland budget.”
“Elections have consequences,” Shope said. “We are in an era of divided government, and we must proceed as such. Republicans can’t get everything they want, and neither can Democrats. We did very well with protecting and funding our Republican priorities.”
Lawmakers face a deadline to approve a spending plan before a potential government shutdown later this week.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jun 10, 2025 | News
By Matthew Holloway |
Arizona’s Republican Senate leadership issued a sharp condemnation of the violent anti-immigration enforcement riots, still raging in Los Angeles in a Monday press release. They also issued a direct call for Arizona’s Democratic Governor Katie Hobbs and Attorney General Kris Mayes to “cooperate with the Trump Administration with enforcing federal immigration laws to keep Arizona communities safe from harm.”
According to Fox10 Phoenix, an anti-ICE protest took place in Phoenix near the Capitol building, but despite claiming to stand “in solidarity” with the violent rioters in LA, remained largely peaceful.
Senate President Warren Petersen said in the statement, “What’s unfolding in California under their radical leftist government is an atrocity. These are not protests. These are violent riots being carried out by criminal thugs with no regard for public safety. If protests here in Arizona escalate to rioting, the Hobbs Administration and Attorney General Mayes must be prepared to take action. I am calling on the governor and the attorney general to honor the oath of office they swore to uphold by cooperating with the Trump Administration on enforcement of federal immigration laws, deportations of criminal illegal aliens, and to hold accountable those who violate state laws when demonstrations spiral out of control.”
“Complete and total chaos is ensuing in California, and Democrat elected officials, including Arizona’s own Governor Hobbs, are banding together in support of this violence,” said President Pro Tempore T.J. Shope. “It is maddening that Hobbs would sign onto a letter from California’s Gruesome Newsom speaking out against President Trump for deploying the National Guard to protect American citizens from harm. Newsflash, Governor Hobbs- it’s not ‘an alarming abuse of power’ for a president to take this action to stop violent rioters. Federal law allows it.”
“Californians have found themselves in the middle of a warzone. I’m grateful the Trump Administration has mobilized the national guard, as well as marines, to stop the riots and restore order so that ICE agents can do their jobs,” said Senate Majority Whip Frank Carroll. “Anyone who harms our citizens, our law enforcement, or our military must be held accountable under the full force of the law. Arizona Senate Republicans stand with police officers, ICE agents, and our military members to ensure this violence does not spread across state lines or develop within Arizona.”
Responding to the Phoenix protest, a Phoenix Police spokesman said, “The Phoenix Police Department became aware of a group of individuals expressing their views near 10th Avenue and Van Buren this evening around 6:00 p.m. The group marched through portions of the downtown area and ultimately returned to where it began on Van Buren Street. Phoenix Police Officers along with Department of Public Safety Troopers were present and closed down streets after it was observed the group was walking in the roadway. Our duty continues to be ensuring the safety of all involved while treating everyone with dignity and respect.”
Rioting in Los Angeles, which began near the ICE detention center downtown and the Paramount neighborhood, escalated since Friday with numerous law enforcement vehicles damaged, officers injured, and several Waymo autonomous vehicles burned leading to the deployment of 2,000 National Guard Troops to protect federal property and personnel. By Monday, the deployment has ramped up to 4,000 National Guardsmen and 700 United States Marines from nearby Camp Pendelton over the objections of Governor Gavin Newsom, Hobbs, and other Democrat politicians who called the deployment “ineffective and dangerous.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by AZ Free Enterprise Club | May 14, 2025 | Opinion
By the Arizona Free Enterprise Club |
Since becoming Governor of Arizona in 2023, Katie Hobbs’ name has been synonymous with corruption. Now, one of her latest vetoes shows the lengths she is willing to go to protect her own schemes.
Buried on the afternoon of Friday, May 2, Hobbs vetoed SB 1612, along with 21 other bills. Sponsored by Arizona State Senator TJ Shope, SB 1612 would have required anyone applying for grants to various state agencies to disclose gifts, donations, or other support provided to the sitting governor. That sort of transparency should be something that every Arizonan can get behind—Republicans, Democrats, Independents, you name it—unless, of course, your agenda doesn’t involve the best interests of Arizona citizens, right Katie Hobbs?
This whole story starts at the very beginning of Hobbs’ tenure as governor. If you’ll recall, at the time, Hobbs set up a shady slush fund to provide donors with a conduit to buy political favor from her administration. While setting up and managing the fund, Hobbs illegally used public resources—like the state’s website—to solicit money for her inauguration. And she also tried to stop the disclosure of the names of those who donated to her inaugural fund.
But after immense political pressure and public records requests filed by groups like the Arizona Freedom Foundation (who operates AZ Free News), Hobbs finally released the names of the donors. One of the names of the groups on the list was Sunshine Residential Homes Inc., a for-profit company that contracts with the State of Arizona to provide some child welfare services. At the time, Sunshine Residential Homes made a donation of $100,000. But in June 2024, an eye-opening report revealed a deeper level of corruption—an alleged pay-to-play scheme between Hobbs and the group home…
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