As Congress struggles to cut spending, states expose Medicaid fraud on steroids

Medicaid for millionaires. Jaw-dropping swindles. Bureaucrats who aren’t checking patients’ eligibility.

As Congress struggles to find spending cuts in a bloated federal budget, a growing number of states are exposing the breathtaking extent of fraud, waste and abuse inside the government’s primary medical welfare program for the poor. 

Arizona became the latest state to unveil failures, as Senate Majority Leader Janae Shamp, House Majority Leader Michael Carbone, and other GOP lawmakers released a report showing that 130,000 of the 388,000 state residents who applied for Medicaid last year were not verified, suggesting up to $6 billion a year in Medicaid fraud.

“When we’re talking about cutting fraud, waste and abuse, that is exactly where we start,” Shamp told Just the News.

The report showed only 24% of Arizonans who applied for the assistance were vetted, and of those people who did get vetted properly, 34% weren’t supposed to be accepted, but they got the Medicaid benefits anyway.

When asked if she believes that Arizona’s Democratic Governor Katie Hobbs would consult the Republicans who led the effort to investigate, Shamp told Just The News, “I always want to believe in the good that, yes, we can work across party lines, and we can figure out how to do this collectively together, because it’s the citizens of Arizona, the taxpayers of Arizona, that are bearing the brunt of this fraud.”

“I have sent a letter to her office, and I’m asking for a bunch of questions to be answered and to find out what it is that the governor’s office is prepared to do with her agency that is directionless, leaderless…no transparency [and] totally unaccountable,” she continued. 

Arizona’s Medicaid problems follow similar issues found in states like Ohio where a Bloomberg Law investigation revealed that state health departments and Medicaid contractors often fail to detect or ignore blatant fraud, costing taxpayers billions annually. 

Congressional leaders are targeting an estimated $50 billion in yearly Medicaid waste, as states and contractors prioritize approving claims over scrutinizing questionable expenditures. 

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