A class action lawsuit filed against the state of Arizona has brought to light a devastating health crisis disproportionately affecting Indigenous communities. The lawsuit, filed by approximately 7,000 victims, alleges that the state’s failure to act against massive Medicaid fraud in sober living homes has resulted in deaths, injuries, and displacement of Indigenous individuals seeking treatment for substance use disorders.
The fraudulent schemes targeted vulnerable Indigenous people enrolled in Arizona’s American Indian Health Program, a Medicaid program administered by the Arizona Health Care Cost Containment System (AHCCCS). Victims were lured with promises of treatment, only to be subjected to exploitation, isolation, and in some cases, further exposure to drugs and alcohol.
Reva Stewart, founder of Turtle Island Women Warriors, emphasized the ongoing nature of the crisis, stating, “People are still missing. And we have so many John Does and Jane Does who were thrown out of these (sober living) homes without identification.”
The lawsuit seeks accountability for wrongful deaths, injuries, displacement, and services not rendered. It accuses the state of gross negligence and violating Arizona’s Adult Protective Services Act, claiming that AHCCCS knew about the fraud as early as July 2019 but failed to take adequate action.
While the state has initiated a $6 million grant program to support affected tribal nations, advocates argue this is insufficient to address the human cost of the fraud. The case highlights the urgent need for comprehensive reform in Arizona’s behavioral health system and stronger protections for vulnerable populations seeking addiction treatment.
See: “Indigenous families sue Arizona over human cost of sober living fraud” (December 17, 2024)
