Senate Republicans Advance Legislative Package to Rein in Medicaid Fraud, Restore Accountability at AHCCCS
FOR IMMEDIATE RELEASE
Thursday, February 26, 2026
PHOENIX, ARIZONA—Arizona Senate Republicans are advancing a legislative package to restore integrity and accountability in Arizona's Health Care Cost Containment System (AHCCCS). This follows a series of oversight hearings that revealed significant fraud, waste, and systematic mismanagement. Senate Republicans are acting quickly to implement safeguards and protect taxpayer dollars after uncovering billions in losses and disruptions to care for vulnerable populations.
This legislation, sponsored by Senator Carine Werner, passed the Senate this week and is now heading to the House of Representatives for further consideration.
SB 1114 appropriates $1 million to the State Treasurer for distribution to the Maricopa County Attorney's Office to support investigations into behavioral health patient brokering schemes that have drained public resources and exploited vulnerable patients.
SB 1115 prohibits AHCCCS employees from working remotely, restoring in-office oversight and accountability at an agency responsible for managing billions in taxpayer-funded health care spending.
SB 1122 prevents AHCCCS from imposing blanket 100 percent prepayment review requirements on behavioral health services provided under the American Indian Health Program unless specific conditions are met.
SB 1171 requires AHCCCS, pending federal approval, to conduct monthly reviews to identify individuals improperly enrolled in both AHCCCS and federally facilitated exchange plans and to inform them about the consequences of dual enrollment.
SB 1233 requires AHCCCS, the Department of Health Services, and the Department of Economic Security to allow licensed or contracted facilities to cure administrative deficiencies before taking disciplinary or enforcement action.
SB 1346 requires AHCCCS's Division of Fee-For-Service Management to notify providers of administrative claim deficiencies within 72 hours and to approve or deny claims within ten days once deficiencies are corrected or if none exist.
"Let's be clear: this package is about accountability, not appeasement," said Senator Werner. "We have exposed a Medicaid system plagued by fraud and bureaucratic arrogance, focusing more on protecting itself than serving patients or taxpayers. While the governor and AHCCCS leadership deflected and delayed, over 1,000 people died, Arizonans suffered from loss of access to care, and taxpayer dollars were wasted. These bills aim to end that chaos by cracking down on exploitation, enforcing transparency, restoring due process, and reasserting legislative oversight. This is real reform, and we won't stop until AHCCCS is accountable to the people it serves."
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus