Unfounded Medicaid Fraud Allegations Surge in Arizona Amid GOP’s Push for Health Care Cuts

A Republican state senator and a pro-Trump group have leveled accusations against Arizona’s Democratic governor, claiming she oversees a massive health care fraud operation. Senator Janae Shamp and the Patients First Coalition, which she claims unearthed the allegations, provided no supporting evidence during their press conference.

Over seven hours later, the Coalition still has not released the promised report that would substantiate their claims. Shamp and the Coalition allege that the Arizona Health Care Cost Containment System has failed to adequately screen applicants for Medicaid, purportedly admitting around 20,000 millionaires and ignoring $6 billion in fraud.

The Arizona Health Care Cost Containment System received approximately $17 billion in federal funding and $2.5 billion in state funds for the 2024 fiscal year.

Christian Slater, spokesperson for Governor Katie Hobbs, condemned the accusations, decrying them as lies intended to justify cuts to Medicaid. “Right now, her Republican colleagues are pushing legislation that could cut more than $300 million from Medicaid,” he stated, warning it could risk up to $7.5 billion in health coverage for Arizonans.

Shamp’s method of gathering information on Medicaid recipients remains questionable. She claimed to have obtained data through “vendors,” yet did not clarify her legal basis for this acquisition, especially as such information is protected under state and federal law.

On Tuesday evening, a Senate representative provided letters from LexisNexis, a data analytics firm that collaborates with the state. However, these letters did not validate Shamp’s assertions.

The allegations made in Arizona echo similar claims from earlier this month in Ohio. A request for comment from the Ohio Medicaid department has gone unanswered. The Patients First Coalition has yet to deliver its report to the Arizona Mirror as promised.

Founded by GOP strategist Shannon Burns, the Coalition initially aimed to assist Robert F. Kennedy Jr. in his confirmation for the U.S. Department of Health and Human Services. Since then, it has pivoted to focus on state-level health issues, adopting a “Make America Healthy Again” platform.

Burns, a prominent supporter of Trump, has controversial ties, having made headlines for substantial IRS debts. An email seeking details on the group’s report from a Texas GOP consultant also received no response.

During the press conference, Shamp framed the issue as nonpartisan, despite clear affiliations with the organization aiding her claims.

The Coalition also appears involved in the anti-vaccine movement, promoting conferences featuring speakers associated with misleading health information. Shamp has a history of spreading vaccine misinformation, having held Senate hearings that propagated falsehoods about COVID-19.

Shamp has since requested a comprehensive audit of Medicaid eligibility from Governor Hobbs, who faces scrutiny as AHCCCS manages its own issues, notably a $2.5 billion recovery effort stemming from a fraudulent scheme affecting Native Americans.