Sober Living Crisis: State of Arizona Faces Class-Action Lawsuit
filed against the State of Arizona regarding the sober living crisis. Lawyers representing the plaintiff allege that the state was aware of massive fraud happening back in 2019. This crisis stems from an estimated $2.8 billion being stolen from Arizona’s Medicaid system due to fraudulent billing for behavioral health services that were never provided.
The complaint, which spans 125 pages, targets the Arizona Health Care Cost Containment System (AHCCCS) and the state’s Department of Health. According to the lawyers behind the lawsuit, Native Americans have suffered injuries, deaths, drug addictions, and homelessness as a result of this scheme, which they refer to as the sober living crisis.
Lawyers from various firms, including Brewerwood Law Firm and McCoy Leavitt Laskey, point out that the fraudulent billing for behavioral health services escalated from $43 million to $2.8 billion. This exploitation of Native American Medicaid members not only affected individuals in Arizona but also in New Mexico as well.
The lawsuit lists several plaintiffs, some of whom have passed away, others who are incapacitated, and some who are children. The lawyers emphasize that the state failed in its responsibility to address the issue, leading to devastating consequences for vulnerable populations.
Dr. Satya Sarma, a former medical director for AHCCCS, raised concerns internally about providers engaging in fraudulent activities. Despite employees warning about facilities opening under different names to avoid scrutiny, the issue was not adequately addressed by the state agencies.
Advocates like Reva Stewart, from the group ‘Stolen People, Stolen Benefits,’ continue to support displaced individuals affected by this crisis. The plaintiffs are seeking damages exceeding $300,000, citing gross negligence and wrongful death on the part of the state.
Officials from AHCCCS and the Arizona Department of Health have issued a joint statement acknowledging the pain caused by behavioral health fraud and emphasizing their commitment to addressing the issue. They express a focus on protecting vulnerable populations, collaborating with law enforcement and Tribal partners, and eliminating fraud within the healthcare system.
The class-action lawsuit sheds light on the sober living crisis in Arizona, holding the state accountable for its failure to prevent and address the massive fraud that has had tragic consequences for many individuals. This legal action aims to seek justice for those impacted and ensure accountability within the state’s healthcare system.
