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

In a contentious press conference on Tuesday, Republican State Senator Janae Shamp, alongside the pro-Trump Patients First Coalition, accused Arizona’s Democratic Governor, Katie Hobbs, of orchestrating a substantial health care fraud scheme. However, no evidence has been produced to back these claims.

The coalition, aimed at supporting Robert F. Kennedy Jr.’s nomination for U.S. Department of Health and Human Services, criticized the Arizona Health Care Cost Containment System (AHCCCS) for allegedly failing to screen applicants adequately. They assert that this oversight allows approximately 20,000 millionaires to access Medicaid, leading to an astounding $6 billion in potential fraud.

Around $17 billion in federal funds and $2.5 billion in state allocations were directed to AHCCCS in the 2024 fiscal year. Responding to the allegations, Christian Slater, a spokesperson for Governor Hobbs, condemned Shamp and the coalition, labeling them as purveyors of falsehoods aimed at justifying severe Medicaid cuts that could affect millions of Arizonans.

“The legislation being proposed could cut Medicaid spending by over $300 million, jeopardizing coverage for up to 500,000 residents,” Slater said. “These drastic measures could lead to the closure of rural hospitals and threaten lives.”

Uncertainty surrounds how Shamp and the coalition derived their conclusions, particularly regarding the potential access to private information about AHCCCS enrollees. Shamp claimed she obtained recipient data from “vendors,” citing her legislative authority; specifics on this were not provided.

The Senate later released two letters from LexisNexis, a firm contracted to verify some Medicaid applicants, which were referred to by Shamp. Yet, these documents did not corroborate any fraud claims.

The group’s accusations mirror those they made in Ohio earlier this month, but the Ohio Department of Medicaid has yet to respond to inquiries. Promised evidence from the coalition remains unpublished, despite assurances made after the press briefing.

The Patients First Coalition, founded by GOP strategist Shannon Burns, initially served as a support mechanism for Kennedy during his Senate confirmation. Now, it has shifted focus towards state-level health issues. The group’s website offers minimal details about its leadership or funding sources, primarily featuring generic imagery.

Burns has a notable history, previously facing considerable IRS debt while associated with the Trump administration. An email requesting the coalition’s report went unanswered by their designated press contact, Matt Mackowiak, known for his involvement in the GOP’s electoral disputes.

While Shamp claimed bipartisan intent in her agenda, she did not reveal the strong connections between her allies and MAGA politics. Burns’ organization has also delved into anti-vaccine advocacy, including promoting a conference featuring controversial speakers linked to misinformation campaigns.

Shamp has previously hosted hearings where vaccine misinformation flourished, with events linked to RFK Jr.’s Children’s Health Defense group. Recently, she raised concerns over Medicaid eligibility, calling for a comprehensive audit.

Despite ongoing scrutiny, AHCCCS has faced its own challenges, notably recovering $2.5 billion related to a scandal involving unlicensed sober living providers.