Arizona

Sen. Tester: Arizona Medicaid scam targets tribal members in Montana, leaving them stranded with no way home

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U.S. Senator Jon Tester of Montana is calling on the Centers for Medicare and Medicaid Services for help, claiming tribal members in Montana are being victimized by a widespread Medicaid scam in Arizona. The Democratic senator sent a letter to Chiquita Brooks-LaSure, the Administrator of CMS on July 19, voicing his concern. Centers for Medicare and Medicaid Services is a federal agency within the U.S. Department of Health and Human Services.  

U.S. Senator Jon Tester (D, Montana)

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“By offering promises of treatment in exchange for changing their residency in Arizona, these fraudulent rehab centers have reportedly recruited Montanans and left them without care and stranded in Arizona,” wrote Tester. 

The letter of “deep concern” comes after FOX 10 reported on the story of Josh Racine, a member of Blackfeet Nation in Montana, who was found homeless in Phoenix in June after being flown out to Arizona by a treatment facility in the Valley. Racine’s sister Laura McGee told FOX 10 she reported her brother missing a little more than two months after he left home.  

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In Tester’s letter, he laid blame Arizona’s Medicaid agency, AHCCCS [Arizona Health Care Cost Containment System], for allowing fraud to “plague Arizona’s Tribal Communities for so long that it spread to other states.”  

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In May, Arizona Governor Katie Hobbs and state leaders announced a crackdown on illegitimate facilities that capitalize on vulnerable Native Americans in need, to get paid off their Medicaid benefits. The sober living scheme has defrauded the state for at least hundreds of millions of dollars. 

FOX 10’s investigative series “Preying on a People” shows you how the sober living scheme takes advantage of tribal members and other vulnerable groups of people battling addiction, keeping them housed and in some cases, intoxicated and under the influence of drugs rather than providing actual therapy services. 

Tester asked CMS for assistance in getting victims from Montana back home, so they can receive proper treatment. 

“Finally, I ask the agency to collaborate in facilitating the necessary resources and efforts to warn Tribes nationwide about this deceitful scam,” said Tester. 

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Read Senator Tester’s full letter: 

In June, Navajo Nation President Buu Nygren signed a declaration for a public health state of emergency to increase funding for Operation Rainbow Bridge. The operation is purposed to help up to 8,000 Native Americans impacted by the exploitation of fraudulent behavioral health outpatient treatment centers. 

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We reached out to Centers for Medicare and Medicaid Services for comment.

For more information on resources for those affected, call 2-1-1 and press 7. If you suspect Medicaid fraud by a provider, click here to submit a complaint to AHCCCS. 



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