A bill designed to prevent Medicaid fraud in sober living homes was signed into law last week, despite opposition from the person who brought the problem forward at the state Capitol.
In recent years, Medicaid fraud has cost the state an estimated $2.8 billion. Scammers targeting Native Americans held people in fake sober living homes while charging the state for recovery services they never provided.
Last week, Democratic Gov. Katie Hobbs signed Senate Bill 1308, sponsored by Sen. Frank Carroll (R-Sun City West). The measure requires new oversight and regulation of sober living homes. It also increases penalties for violations.
But Sen. Theresa Hatathlie (D-Coalmine Mesa) says the new law doesn’t go far enough.
Since she was first appointed to the Legislature in 2022, Hatathile has tried unsuccessfully to get her own solutions passed, and said the bill Hobbs signed only gives the “illusion of a fix to the problem.”
Hatathlie introduced a bill last session which was vehemently opposed by medical groups, including legitimate sober living homes who argued her broad proposal would inadvertently destroy recovery centers people actually rely on.
One specific element Hatathlie said is lacking from Carroll’s bill is stricter licensing requirements at the Arizona Corporation Commission, which issues certificates of good standing to treatment facilities — in addition to the state Department of Health Services.
Carrol’s legislation won’t stop bad actors who get suspended by DHS from getting certificates from the Corporation Commission, she said.
Carroll declined to comment on the bill signing. SB1308 passed out of the Legislature with bipartisan support, though some Democrats voiced their concern that Hatathlie wasn’t on board with the bill.
The bill was supported by the League of Arizona Cities and Towns representing Arizona’s municipalities.
Three tribal communities also signed in support of the bill: the Tohono O’Odham Nation, Colorado River Indian Tribes and Cocopah Indian Tribe.
