Arizona legislative leaders blast fraud by 'Medicaid millionaires'

By Dave Mason
The Center Square 

Arizona is paying $6 billion in Medicaid benefits to more than 20,000 recipients who don't need the help, legislative leaders said Tuesday at a news conference about a Patient First Coalition report.

About one-fourth of those people are “Medicaid millionaires,” who could have as much as $1 million in total assets, Senate Majority Leader Janae Shamp, R-Surprise, told reporters Tuesday in Phoenix. 

As reported by The Center Square Monday, the Patient First Coalition report found tens of thousands of wealthy people across the U.S. are enrolled in Medicaid, a program designed to help low-income individuals and families, including seniors, children, pregnant women and people with disabilities.

After reading the coalition’s report, Shamp said she decided to submit a formal request Tuesday to Democratic Gov. Katie Hobbs for a full, across-the-board audit of Arizona’s verification of Medicaid recipients' assets and income. 

“We need to ensure our money is being spent wisely and in full accordance with the law,” Shamp said.

As the Arizona Legislature debates the state's budget, Hobbs is seeking a 7.5% increase for spending for a Medicaid system “that is unaccountable and mismanaged," Shamp said.

Shamp, who made a request of providers to find answers to her questions about income and asset verification, said she received help “by some remarkable work from the Patient First Coalition.” She called the findings a “wake-up call.”

A review shows that only 23% of Medicaid enrolles underwent proper verification, Shamp said.

“What that means is that more than three-quarters of Arizonans enrolled to receive this public benefit did not get the necessary review to determine if they’re qualified to receive it,” she said. “Let that sink in."

The majority leader went on to note that there were over 5,000 enrollees with over $50,000 in liquid assets.

“Sometimes called Medicaid millionaires, these individuals are very likely to have total assets in excess of a million dollars," Shamp said. "In other words, they should not be receiving Medicaid benefits.”

House Majority Leader Michael Carbone, R-Buckeye, spoke next at the podium and noted the Arizona Health Care Cost Containment System, which is the state's Medicaid agency, and the Department of Health Services already have more than 1,100 full-time employees who could work on asset and income verification.

“We’re not talking about a new bureaucracy. It’s using existing resources,” Carbone said. “Arizona’s taxpayers deserve to know how their hard-earned money is going to be used.”

The issue isn’t a partisan one, Shamp said. She noted that allowing wealthy people to receive Medicaid ultimately hurts those who genuinely need the help.