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HEALTH Medicaid fraud targeting Indigenous communities continues despite AHCCCS reforms Nearly three years after Arizona officials uncovered a $2.5 billion Medicaid fraud scheme targeting Native Americans seeking addiction treatment, the state is still grappling with the fallout—and the fraud itself. Though Arizona Health Care Cost Containment System officials say the crisis has stabilized in response to investigations and enforcement, they acknowledge that fraudulent activity continues. The number of new behavioral health fraud investigations has dropped from about 1,400 cases in 2023 to 270 as of August 2025. By comparison, just nine such cases were opened statewide in 2019, before the scheme came to light. Advocates say bad actors continue to target people enrolled in the American Indian Health Program through social media and informal networks, steering them into unstable substance use treatment programs. “Despite public exposure, investigations, lawsuits, media coverage and legislative attention, the same harmful practices remain active,” said Reva Stewart, a Diné activist who has worked with victims and families since the scandal surfaced. “The system has not been fixed. It has only adapted.” Meanwhile, legitimate providers say efforts to crack down on fraud have delayed payments and disrupted care. During recent legislative hearings, providers testified that hundreds of thousands of dollars in claims remain unpaid or under review, forcing difficult decisions about staffing and services. Now, lawmakers are proposing sweeping structural changes to how Arizona oversees the American Indian Health Program—including shifting day-to-day administration to an outside managed care organization. Supporters say the move is necessary to close oversight gaps that allowed the fraud to flourish. But AHCCCS officials warn of costs, logistical hurdles and federal compliance concerns. READ THE FULL STORY