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Arizona Governor Katie Hobbs has approved a new law aimed at providing more oversight of sober living homes, following revelations two years ago of a Medicaid fraud scheme targeting Native Americans seeking drug and alcohol treatment. The legislation, introduced by three Republicans, amends state regulations for the licensing and oversight of sober living homes, placing greater requirements on the Arizona Department of Health Services. Despite concerns from a Navajo Nation lawmaker that the bill does not fully address the root causes of the fraud, the bill is set to come into effect in the fall.
Governor Hobbs, who signed the legislation among several others, did not elaborate on her decision but has been actively advocating for reforms to crack down on illicit activities. The move comes after reports by ProPublica and the Arizona Center for Investigative Reporting revealed a massive fraud scheme that went unchecked for years, resulting in individuals being lured into substance abuse treatment programs that were exploited for financial gain.
The new law will mandate timely reporting of incidents such as deaths, overdoses, or severe harm occurring in sober living homes to the health department, family members, and emergency contacts. It also requires the health department to notify local governments about new licenses issued to operators of such facilities to enhance transparency.
Advocates believe the bill will set higher standards for the industry and ensure better care for vulnerable individuals. While receiving bipartisan support, critics argue that the legislation falls short in addressing all factors contributing to the fraud scheme and protecting victims. Despite these concerns, the bill has been signed into law to enhance oversight and regulation of sober living homes.