Director Nominations Committee Chair Responds to Hobbs' Withdrawal of Unqualified Nominee to Oversee State Medicaid Program

FOR IMMEDIATE RELEASE                                                                                

Wednesday, April 30, 2025

Director Nominations Committee Chair Responds to

Hobbs' Withdrawal of Unqualified Nominee to Oversee State Medicaid Program

PHOENIX, ARIZONA— Senate Director Nominations Committee Chair Jake Hoffman is responding to Governor Katie Hobbs' withdrawal of an unqualified nominee to oversee the Arizona Health Care Cost Containment System (AHCCCS), which is the state's Medicaid program.

"Today's announcement is a testament to the important work being conducted on behalf of the citizens of Arizona by the Senate Committee on Director Nominations. I'm pleased Katie Hobbs saved herself, and AHCCCS Director Nominee Carmen Heredia, from the embarrassment of advancing her through the scheduled hearing this week," said Chairman Hoffman. "Under Heredia's direction, AHCCCS mismanaged the procurement process and improperly awarded contracts for healthcare services for thousands of elderly and physically disabled individuals enrolled in the Arizona Long Term Care System. A judge described the process as 'arbitrary and capricious' and recommended a full reset. Instead of responding to the feedback appropriately, Heredia basically told the judicial system to pound sand and moved forward with the contracts. Her refusal to provide transparency in this matter displayed nothing more than arrogance.

"What's even worse, Arizona is in the middle of a monumental Medicaid fraud crisis with a loss of more than $2 billion in taxpayer dollars. Under Katie Hobbs' leadership, Heredia's response has been incredibly disturbing, to say the least. Patients in sober living homes were evicted from facilities overnight after AHCCCS poorly executed suspensions of more than 300 providers. Many of these patients were mid-treatment, detoxing, or severely mentally ill and were dropped off on the streets with no identification or transportation. Legitimate providers were caught up in the mess without AHCCCS providing explanations or due process. Some are still waiting to be reinstated or reimbursed. We are left with a broken system due to Heredia's mismanagement, and our vulnerable populations are caught up in this collapse.

"Since its inception, the Committee on Director Nominations has been committed to honestly, thoroughly, and accurately vetting Katie Hobbs' nominees. We have served as Arizonans' last line of defense against incompetent, unqualified, and highly partisan picks to lead state agencies. We will continue to do the hard work the citizens of Arizona expect of us and will only approve competent, non-partisan individuals to serve in these critical roles. We look forward to Katie Hobbs sending us a sensible leader that will be able to rein in the abuse that has occurred at AHCCCS."

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For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus

kquintero@azleg.gov