PHOENIX — Dozens of sober living providers claim they were improperly targeted and forced to close their doors nearly two years after the state sounded the alarm on a $2 billion sober living crisis.
“We’re filing this lawsuit today for justice and accountability,” said Civil Rights Attorney Ben Crump.
The 105-page lawsuit was filed on behalf of sober living facilities it claims were racially discriminated against during the state’s crackdown on fraudulent sober living homes.
“It is so troubling that they disproportionately targeted Black and brown providers,” said Crump.
Crump, other local attorneys, and impacted providers held a press conference in downtown Phoenix on Tuesday.
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“What you see behind us is just a fraction of the people who have been affected by the arbitrary and capricious action by the state,” said attorney Rick Meadow.
The lawsuit points the blame at the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid agency, and other state agencies that it alleges overcorrected when Arizona cracked down on bad actors at the center of the $2 billion fraud.
“The state suspended, terminated, and got rid of people with a knee-jerk reaction. They did not give people due process,” said Pastor Andre Miller, vice president of the Arizona Conference of NAACP.
Fraudulent sober living homes were accused of billing the state for services that were never provided. Native Americans were many of the victims.
“We don’t support people doing wrong. And these individuals, our clients, did not do wrong,” Crump said.
Ahaji Klroma is one of the impact providers who, according to the lawsuit, say the state’s actions, “resulted in total devastation,” and “many of whom have lost homes, liquidated retirement accounts … and lost businesses.”
“We were wrongfully grouped with bad actors,” Klroma said. “Without just cause or reasoning. We were ignored, intentionally slow-paid, and eventually received no payment at all for the services we provided to AHCCCS clients.”
ABC15 reached out to AHCCCS and the Attorney General’s office for comment.
AHCCCS said it has not been served with the lawsuit and, therefore, has not reviewed the allegations.
“We remain focused on sustainable solutions that prioritize member health and safety, and a strong and stable provider network. We continue to collaborate with law enforcement and Tribal partners to protect the populations we serve,” AHCCCS said in a statement.
The AG’s office declined to comment.
