A senator from the Navajo tribe expressed on Friday her desire for the passage of her proposed legislation, which aims to strengthen oversight of rehabilitation facilities in response to extensive fraud that has defrauded millions of dollars from Arizona’s Medicaid program and defrauded numerous Native Americans seeking treatment for their addictions.

The Senate unanimously passed Senate Bill 1655, introduced by Sen. Theresa Hatathlie, this week and referred it to the House. The bill was given a first reading and assigned to the Health and Human Services Committee.

Hathalie stated that she expects the full House to vote on the legislation by Thursday, and she encourages constituents to express their support for it.

Hatathlie, a representative for Arizona’s 6th District on the Navajo Nation, stated that the passing of Senate Bill 1655 will establish a system of accountability and fairness. The issue has been ongoing prior to the pandemic and has significantly impacted Native individuals. This bill will not only aid in promoting resilience and recovery, but it will also send a strong message to offenders that their actions are not tolerated in Arizona.

The attempt by the legislature coincides with a legal action taken by the families of two Native American individuals who passed away while enrolled in rehabilitation schemes in Phoenix. The suit has been filed against Arizona’s Medicaid program and Department of Health Services, citing inadequate monitoring.

The Attorney General’s Office has stated that it will not provide any statements regarding the ongoing civil lawsuit while it is still actively pursuing numerous cases against the relevant programs.

In May of 2023, Arizona Governor Katie Hobbs and Attorney General Kris Mayes announced that an investigation into potential Medicaid billing fraud was being intensified. This investigation had already been ongoing before they assumed their positions.

Most of the fees were filed via the American Indian Health Program, which is a Medicaid program that enables healthcare providers to invoice for payment for services provided to Native Americans and Alaska Natives.

According to a recent report by Mayes, 72 people and organizations have been charged and 44 of those charges occurred during her tenure. Additionally, assets totaling over $90 million, including property and vehicles, were confiscated in connection to these cases.

The Arizona Health Care Cost Containment System has implemented stricter measures, such as a six-month suspension on accepting new behavioral health clinics for Medicaid billing. The impact of these fraudulent activities came to light following alerts from governments outside of Arizona, including tribal authorities.

Hatathlie’s suggested legislation aims to raise the financial penalty for each occurrence of failure to comply at rehabilitation facilities from a maximum of $500 to a minimum of $1,500 per day.

Additionally, it would mandate informing patients’ relatives upon their arrival for an assessment at a facility. Staff members at residential facilities would need to undergo fingerprinting and background screenings.

On the day the Senate approved the bill, Crystalyne Curley, a member of the Navajo Nation Council, displayed her backing for the Hatathlie’s legislation.

“I am concerned that the legislation may not be sufficient in closing down the most harmful unlicensed facilities. This is because it primarily targets licensed facilities,” stated Reva Stewart, a Phoenix-based Navajo activist who assists Native Americans in returning to their reservations after being deceived by rehab programs.

Stewart expressed a desire for a resolution to this issue, clarifying the need for a successful outcome.

In initial Senate hearings, delegates from assisted living and nursing homes, as well as other facilities that may face consequences, expressed concerns about the potential severity of penalties for smaller establishments.

According to Hatathlie, there will be a 30-day window for facilities to correct any violations. She mentioned that the legislation has undergone multiple changes in the past few weeks and could potentially have further modifications.

“The Republican Senate President, Warren Petersen, stated that the recent vote in Arizona was significant and presented a major issue. He also warned state agencies to not cross paths with Senator Hatathlie, as they will face consequences for any wrongdoing.”