Arizona's cracking down on fake rehab centers. What's the political fall out and what's next?

The Gaggle: An Arizona politics podcast

At least $2.3 billion has been milked from Arizona taxpayers since 2019 in a shocking fake rehab program that mainly targeted Indigenous communities.

Scammers posing as legitimate workers or counselors for sober living communities in Phoenix would patrol areas where Native Americans would gather to buy and consume alcohol. They would then pick up people who were intoxicated on drugs or alcohol and take them to Phoenix. Once there they'd have them sign up for the Arizona Health Care Cost Containment System, or AHCCS. Once signed up, the victims would have their AHCCS accounts billed for alleged mental health treatment or addiction rehabilitation. But none of these treatments were ever provided.

But the fraud cut deeper than just loss of money. Victims found themselves stranded in the Valley, blackmailed and with no real support. Some even lost their lives in these fake sober living homes.

"For years, these providers have allegedly defrauded the state of millions of dollars while creating a large-scale humanitarian crisis that disproportionately affects Arizona’s tribal communities," Gov. Katie Hobbs said at a press meeting.

"This is tragic," Attorney General Kris Mayes added. "What has happened is tragic and outrageous. And, and I’ll just speak for myself as the attorney general of this state, I believe the state of Arizona owes our tribal nations an apology.

In this episode of The Gaggle, host Mary Jo Pitzl sits down with the reporters who covered the story: Stephanie Innes, Arlyssa Becenti, and Richard Ruelas.

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