PHOENIX — Arizona's rehab and sober living scandal has cost Arizona an estimated $2.8 billion, state senators revealed Thursday.
Previous estimates for the massive statewide scam had been said to be about $1 billion.
State Sen. Theresa Hatathlie, D-District 6, told reporters during a press conference that was the amount she had been given by the Arizona Attorney General's office.
Hatathlie called the press conference to bring attention to Senate Bill 1655, a bill she sponsored called the Comprehensive Sober Living Bill, which unanimously passed the Arizona Senate.
SB 1655 would overhaul how sober living and behavioral health facilities are licensed, Hatathlie said.
Over the past year, 12News has reported on the sober living and rehab scandal that primarily targeted Native Americans. Tribal members were transported from reservations to facilities and homes off the reservation with the promise of treatment for drug and alcohol addiction.
In many cases, that treatment was not provided, or the state was overbilled by millions of dollars. Some providers were accused of billing for deceased patients, others allegedly billed for patients who were in jail.
The scandal spread beyond Native Americans. As the fraud was discovered, the Arizona Health Care Cost Containment System suspended hundreds of providers from the AHCCCS pay system. The Arizona Attorney General's Office has also filed dozens of indictments.
“Not only is the fraud apparent, but also the loss of life," Hatathlie said. "Every time I go home, I constantly hear stories. I hear my relatives shedding tears, seeing them cry.”
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Hatathlie's bill would increase penalties for unlicensed sober living homes, she said.
Currently, nothing in state law prevents unlicensed facilities from using the term "sober living."
“My bill says, 'No, you are unlicensed, you're gonna be charged with a class six felony,'" Hatathlie said. "You can go to jail."
It increases the penalties for unlicensed sober living facilities to between $5,000 and $10,000.
SB 1655 now heads to the Arizona House of Representatives for further consideration.