Victims of Medicaid fraud who filed a class action lawsuit against Arizona are moving forward with their case and claim corruption exists inside state agencies.
Starting in 2019, bad actors defrauded the state’s Medicaid system out of an estimated $2.8 billion by charging for rehabilitation services they didn’t provide.
The scheme largely targeted Native Americans through the American Indian Health Plan fee for service program administered by the Arizona Health Care Cost Containment System, the state’s Medicaid agency.
The state has been trying to get the case — which was filed in 2024 — dismissed.
At the time, attorney Dane Wood estimated 2,000 people died in fraudulent sober living homes.
The state Supreme Court rejected the last dismissal attempt in May.
Wood along with attorney John Brewer pushed back on state officials touting their progress on fraud mitigation over the last several…
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