29-01-2025
‘Scapegoat': Attorney Ben Crump says Arizona wrongfully punished health providers in Medicaid fraud scandal
The Brief
Attorney Ben Crump filed a lawsuit against Arizona, alleging racial bias in a state-wide Medicaid fraud scandal.
The claim says black and brown providers were wrongfully suspended and received slower reimbursements than their non-minority counterparts.
The document says providers of color were 300-times more likely to face payment denials.
PHOENIX - High-profile civil rights attorney Ben Crump filed a new lawsuit against the state of Arizona.
The complaint is linked to the massive Medicaid scandal that cost Arizona an estimated $2 billion in fraud.
It claims the scheme involved "bad actors" targeting vulnerable people with addictions.
Click to open this PDF in a new window.
What we know
Behavioral health providers said they were hit with baseless accusations. Nearly 80 plaintiffs are included in this complaint against Arizona's Medicaid agency.
They claim they've either been wrongfully suspended or reimbursed for services too slowly, causing some businesses to go bankrupt.
"They came up with a way to scapegoat it and try to blame hard-working providers for their malfeasance," said Crump at a news conference.
Big picture view
Crump is calling out Arizona's Health Care Cost Containment System, saying AHCCCS unjustly targeted black and brown behavioral health providers during a large-scale crackdown in 2023.
He says providers of color were 300-times more likely to be denied payments for services provided compared to non-minority providers.
"Without just cause or reasoning, we were ignored, intentionally slow paid, and eventually received no payment at all for the services we provided to AHCCCS clients," said Shaji Koroma of Koroma Family Wellness Care.
The backstory
FOX 10 has extensively covered the sober living scheme that preyed on vulnerable Native Americans on the American Indian Health Plan, enticing them with alcohol and drugs while not providing any treatment services.
These plaintiffs say AHCCCS overcorrected with a new administration and used a "ready, aim, fire" approach on hundreds of providers.
"The state suspended, terminated and got rid of people with a knee-jerk reaction," said Rev. Andre Miller of Fosters House LLC.
Some of the plaintiffs have been suspended due to allegations of fraudulent billing, which stops payments immediately.
"The fact that their unsubstantiated claims were enough to suspend your license, to terminate your license without ever having an opportunity to defend yourself," Crump says regarding the root issue of the lawsuit.
Suspended facilities have 30 days to appeal the decision, but plaintiffs say they are still waiting for state hearings.
The crackdown, Crump believes, will result in AHCCCS patients without available treatment and care.
At the end of the press conference, a heated moment as this woman spoke up:
"You know how you help? You come to our communities to our tables and listen to our guidance instead of being outside of our communities and acting like you know what is best!" she said.
Reva Stewart, who leads the advocacy group "Stolen People, Stolen Benefits" made her presence felt. She shared a reminder to focus on the thousands of Native American victims.
"They feel like they're being discriminated against. Where are the seas of our people that should be here, if they are for the people?" Stewart said.
What's next
Crump's plaintiffs are suing the state over several allegations including negligence, racial discrimination and lack of due process. They are requesting a jury trial.
AHCCCS provided FOX 10 with the following statement:
