Arizona State Senator Carine Werner (R-4), chair of the Senate Committee on Health & Human Services, is leading a Senate oversight investigation into the recently uncovered fraud in the state’s Medicaid program. A preliminary report revealed that the state had lost $2.8B in fraudulent claims and other schemes. It also showed that more than 140,000 recipients had been disenrolled, mostly due to “widespread failures” by state agencies.

Senator Werner stated, “This isn’t just a story about government failure—it’s about billions of your dollars stolen while families lost the coverage and services they depended on. Arizona families deserve a health care system that protects the vulnerable – not one that rewards criminals and wastes money. Every Arizona taxpayer should be outraged. Our job now is to uncover how this happened, hold those responsible accountable, and make sure it never happens again.”

Earlier investigations, such as those by Rep. John Gillette (R-30), revealed that some healthcare providers had identified and exploited gaps in oversight, allowing incorrect, excessive, and fraudulent billing within the Arizona Health Care Cost Containment System (AHCCCS). Those losses, estimated at nearly $3 billion, had amplified impacts, including the loss of coverage for more than 140,000 people through AHCCCS. The Native American communities of Arizona were notably impacted.

“The cost of fraud goes far beyond the billions stolen. Families are left paying more, costs have increased for hardworking Arizonans, and our trust is shattered, leaving our most vulnerable Arizonans abandoned. On top of all that, services are shrinking and providers who play by the rules are being pushed out, limiting options for honest care,” Werner added. “Criminal enterprises exploited loopholes, and government agencies were complicit or ignorant. The level of betrayal is unfathomable and will be thoroughly investigated because Arizonans deserve answers.”

The oversight hearing is scheduled for Wednesday, October 1, 2025, at 1:00 p.m.