Arizona Senate Proposes New Measures to Combat Medicaid Fraud in Sober Living Homes
The Arizona Senate has recently moved forward with a proposal aimed at tightening the regulation of sober living homes to address a Medicaid fraud scandal that has cost the state billions. This legislative effort seeks to curb fraudulent activities that have particularly impacted Native American communities.
On Tuesday, a divided Senate approved a measure designed to enhance oversight and regulation of sober living facilities through the state Department of Health Services. The bill, despite its intentions, has faced criticism from some lawmakers, including Sen. Theresa Hatathlie (D-Coalmine Mesa), who has been a vocal advocate against the scam for years.
Sen. Hatathlie, who represents a predominantly tribal region in Northern Arizona, expressed dissatisfaction with the current proposal, emphasizing the ongoing risk it poses to her community. “To say it’s good enough now when we still have people dying and getting lost in the system is a disservice to human lives. These are my relatives, these are my family members,” she stated.
The proposal was introduced by Sen. Frank Carroll (R-Sun City West), after a previous version failed to pass. Carroll’s bill mandates the Department of Health Services to conduct inspections and requires staff at sober living homes to undergo fingerprinting. Noncompliance could lead to suspension, license revocation, and increased fines.
Additional stipulations in the bill include the establishment of health and safety standards, mandatory notification of serious incidents, a cap on the number of residents per facility, and required investigations following complaints. Despite these measures, Sen. Hatathlie remains critical, arguing the bill does not sufficiently address the root of the problem.
“Here we’re just passing the buck. And with that I still vote no. I have a feeling that we’re still going to be having this conversation next year,” she remarked to her fellow senators.
The recent vote concluded with a 20-7 outcome, with some Democrats and Republicans opposing the measure. The Attorney General’s Office has actively pursued and prosecuted fraudulent operators, yet the problem persists, prompting a class-action lawsuit against the state, with accusations that an estimated 2,000 people have died in these fake facilities.
Support for the bill comes from entities like the League of Arizona Cities and Towns, which recognizes the detrimental impact of fraudulent sober living homes on communities. “For too long, I have heard frightening stories about fraud and abuse at these homes thanks to the lack of regulation and licensing. This bill puts bad actors on notice and ends the gravy train of taxpayer dollars to those attempting to milk the system for easy money,” Carroll asserted.
Sen. Hatathlie has proposed additional changes to ensure the legitimacy of these homes, including modifications to the Arizona Corporation Commission’s role and requiring the state Department of Insurance and Financial Institutions to validate the authenticity of sober living facilities.
For more details on the legislative process, visit the source. To read about the ongoing legal actions, refer to this article.
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