Providers ‘wrongly targeted’ by AHCCCS in sober living scandal file lawsuit [Video]

PHOENIX — Health providers who say they were negatively affected by actions taken by the state to prevent fraud in Arizona’s Medicaid system are taking legal action, claiming they were “wrongly targeted.”

Attorney Ben Crump announced Tuesday he was filing a lawsuit on behalf of several providers in Arizona whose business operations were hindered by the suspensions implemented by the Arizona Health Care Cost Containment System. 

In 2023, the state began suspending dozens of providers suspected of committing fraud and exploiting vulnerable Native American residents. The scandal is estimated of costing the state billions of dollars and multiple individuals have been criminally indicted.

But some providers say the state overstepped its authority and punished businesses not involved in the fraud.

The lawsuit filed in Maricopa County further accuses state agencies of discriminating against minority-owned clinics and businesses, claiming that white providers were not subjected to AHCCCS …