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Gillette Exposes Healthcare Fraud Amid Hobbs’ Cover-Up

Claims its a symptom of a much larger pattern of corruption

State Representative John Gillette speaking with the media at a press conference hosted by Border 911 at the Arizona State Capitol building in Phoenix, Arizona in 2024. (Photo: Gage Skidmore)

Rep. John Gillette says he’s tired of watching Arizona taxpayers get betrayed. Recently, the Republican lawmaker launched his own Substack to publish what he calls “the receipts” on systemic healthcare fraud, Democrat vetoes, and Governor Katie Hobbs’ deliberate cover-ups.

“This isn’t a systems failure—it’s a political failure, engineered through neglect and corruption,” Gillette said. “The people deserve the truth, even if the governor wants to bury it.”

Gillette’s research outlines how AHCCCS relied on self-attestation and allowed agency employees to sign applications, creating tens of thousands of unlawful enrollees. “That opened the door to sober-living scams, fraudulent EBT cash-outs, and illegals claiming residency with nothing more than a property address,” he said. When AHCCCS leaders blamed IT glitches, Gillette pushed back: “Technology wasn’t the issue—political will was.” He points to the 30,000 ineligible enrollees Republicans removed during a budget standoff as proof.

At the center of Gillette’s case is Hobbs’s use of the veto pen. “Republicans passed corrective bills, but Hobbs vetoed every single one,” he said. “She left the loopholes wide open and guaranteed more fraud.” Among them: his own HB2581, requiring in-person enrollment, along with HB2449 and SB1268, which mirrored state audit findings.

The watchdog lawmaker is also sounding alarms about the Parents as Paid Caregivers program, which ballooned from $750 million to $1.5 billion in just a year. “Hobbs shifted money around to keep the crisis quiet until it was near bankruptcy,” Gillette said. A $122 million bailout was eventually forced through.

The 2023 Single Audit revealed $231.1 million unaccounted for at DES and widespread AHCCCS fraud. “These aren’t small mistakes—this is potential wire fraud, theft of federal funds, and violations of the False Claims Act,” Gillette said.

Instead of addressing the failures, he argues Hobbs sought political cover. “She diverted $30 million in ARPA funds for medical debt forgiveness without legislative appropriation. It was a stunt, and it violated both federal law and the Arizona Constitution,” Gillette said.

Gillette’s Substack will serve as a central hub for his continuing findings. “This is bigger than any one politician. It’s about accountability. I’ll keep posting the documents, testimony, and audits the governor doesn’t want you to see,” he said.

In his words, “Republicans warned, legislated, and acted. Hobbs vetoed, concealed, and bankrupted.”

Gillette put out a call to action: “These reports have already been turned over to the U.S. Department of Justice. Now it’s time for the grassroots to unite.

We are asking all grassroots organizations, activists, and concerned citizens to call General Bondi at (202) 353-1555 and demand a full investigation of the Hobbs administration for corruption, fraudulent use of federal funds, and cover-ups.”

“The left wants us divided by small differences,” Gillette added. “But this fight is bigger than any one group. Arizona taxpayers are being robbed, and someone has to be the watchdog. That’s what I’m here to do.”

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Christy Kelly: Kelly is a political writer and analyst on law and culture, with a JD/LLM in Mediation. She’s a girl mom of three, wife to Curtis, and founder of Humanity Assemble. When she’s not writing or mediating, she’s hiking desert trails—where quiet skies and rugged paths help her make sense of a noisy world. Follow Kelly on Twitter / X. Email tips to Kelly.writes@icloud.com
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