PHOENIX – A civil lawsuit has been filed in Arizona in connection with the state’s sober living crisis and massive Medicaid fraud. The lawsuit alleges that the Arizona Health Care Cost Containment System (AHCCCS) and the Arizona Department of Health Services are responsible for the deaths of two individuals, Carson Leslie and Fernando Largo. The lawsuit claims that AHCCCS failed to oversee billing by behavioral health providers and that the Department of Health Services awarded licenses to providers without requiring liability insurance.
The fraud scheme involved billing AHCCCS, which provides Medicaid coverage, for substance abuse treatment that vulnerable individuals never received. It is estimated that the fraud amounted to $2 billion. The lawsuit, brought by the BrewerWood law firm, argues that stronger oversight and requirements for liability insurance would have prevented a majority of the fraudulent billing.
The sober living crisis in Arizona has been ongoing, with “bad actors” opening pop-up sober living homes to take advantage of vulnerable individuals struggling with addiction. The massive overbilling and fraud associated with these homes has led to crimes, deaths, and other incidents.
The lawsuit filed by BrewerWood is part of a larger effort to hold state agencies accountable and bring justice to the victims. Advocates believe that these lawsuits are a step in the right direction for bringing about change and ensuring that the true victims are heard.
AHCCCS and the Arizona Department of Health Services have yet to comment on the pending litigation. The lawsuit highlights the need for stronger oversight and regulations in the sober living industry to protect vulnerable individuals and prevent further Medicaid fraud.