Senate Health & Human Services Committee Announces Special Hearing on Medicaid Fraud in Arizona

FOR IMMEDIATE RELEASE                                                                                     

Thursday, July 10, 2025

Senate Health & Human Services Committee Announces

Special Hearing on Medicaid Fraud in Arizona

PHOENIX, ARIZONA— Senate Health & Human Services Committee Chairwoman Carine Werner is announcing a special hearing on August 18, 2025, at 2 pm at the Arizona State Senate to address the alarming rise in Medicaid fraud, abuse, and waste across the state.

The special hearing comes in response to the growing reports of fraudulent billing, unnecessary treatment claims, and corrupt referral practices within AHCCCS, Arizona's Medicaid system. Many of the fraud claims are tied to Residential Treatment Facilities, also known as "sober living homes." One particularly egregious case involved Farukh Jara Ali, owner of ProMD, a company operating out of Pakistan. Ali was recently indicted for $650 million in fake Medicaid claims. Additionally, reports regarding Residential Treatment Facilities schemes allege patients were bribed and directed to specific facilities or providers who, in turn, those fraudulently billed Medicaid for services that were either not provided or medically unnecessary. Particularly troubling is the pattern of targeting Native American patients who are promised treatment under but are exploited in schemes that prioritize kickbacks over care.

"We are hearing of too many instances where Arizona's Medicaid system is being hijacked by criminals, while honest providers, patients, and ultimately all taxpayers, pay the price," said Chairwoman Carine Werner. "We have an obligation to investigate the systems and processes that have allowed bad actors to commit fraud while good providers are being pushed out of the system, leaving vulnerable populations to suffer. Arizona is among several states affected by a recent nationwide "takedown," which charged over 300 individuals in coordinated healthcare schemes, costing the state more than $650 million. We must investigate these issues with stakeholders to identify actionable solutions to stop fraud and protect patients throughout Arizona."

###

For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus

kquintero@azleg.gov