'Medicaid Millionaires' Cost Arizona $6 Billion Annually, Janae Shamp Unveils

PHOENIX—State Senator Janae Shamp (R-AZ) presented findings during a Health and Human Services Committee hearing on Thursday on Medicaid fraud, highlighting what she called "Medicaid Millionaires" —individuals with substantial assets enrolled in benefits meant for Arizona's most vulnerable populations.

Senator Shamp outlined concerns about Arizona's Health Care Cost Containment System (AHCCCS) and its verification processes for the Aged, Blind, and Disabled (ABD) Medicaid program, which she estimates involves approximately $6 billion annually.

Addressing these "Medicaid Millionaires," she asked: "How do you sleep at night? This is fraud. This is criminal."

The ongoing investigation, launched in June 2024 using LexisNexis Risk Solutions data, analyzed 87,829 asset verification transactions. According to her analysis:

• Approximately 23% of Arizona's 388,000 ABD Medicaid enrollees underwent asset verification
• Of those checked, 34% were found to have assets above eligibility limits but remained enrolled
• More than 5,000 individuals had liquid assets exceeding $50,000
• Based on this data, Shamp estimates that over 130,000 enrollees may not meet eligibility requirements

Federal law requires states to verify 100% of ABD Medicaid applicants have no more than $2,000 in liquid assets. However, Arizona has requested waivers, making it one of only two states, alongside California, without proper asset limits.

"If there's 130,000 ineligible enrollees at $10,000 a year, that's $313 million a year we could be utilizing to actually take care of the vulnerable in our society," Shamp explained during the meeting.

Current verification examines cash in U.S. checking and savings accounts, as well as certain money market balances. The system doesn't check stocks, retirement accounts, second homes, rental properties, land, offshore assets, and more under the radar.

AHCCCS Leadership Questions

Additionally, Shamp noted ongoing leadership transitions at AHCCCS. Former Director Carmen Heredia, appointed by Governor Katie Hobbs (D-AZ) in January 2023, then resigned in April 2025 and was operating without a director until the newly appointed Virginia Rountree in October 2025.

"If you don’t have a leader, how can you fix anything?" Shamp asked during an exclusive meeting with Cactus Politics. "It's just going to be status quo because there's nobody in charge."

After months without a director, the senator raised concerns about organizational stability at AHCCCS.

Communication with CMS Administrator

Shamp said her efforts support the Trump administration's "Make America Healthy Again" initiative. She has communicated with the Centers for Medicare & Medicaid Services (CMS) Administrator, Dr. Mehmet Oz, and the HHS Secretary's office, providing detailed reports on her findings.

Back in June 2025, she sent a letter to Dr. Oz requesting a federal audit of AHCCCS processes, disclosure of any Biden Administration waivers that influenced verification protocols, and referral of evidence to Attorney General Pam Bondi.

Shamp also requested zip code data on the 49,084 individuals enrolled in multiple states' programs and asked CMS to investigate potential AHCCCS employee misconduct.

“This exemption for the asset limit for the ADB, ABD, Medicaid eligibility is a huge policy gap,” Shamp continued. “And that is a policy gap that we are working on getting rid of.”

She cited the Medicaid Extenders Act of 2019, noting Arizona's noncompliance risks considerable federal funding penalties.

However, Dr. Oz is limited to sharing information with Shamp but is working towards the same goals.

Addressing Tribal Communities

Regarding tribal communities, Shamp explained that Native American citizens receive Medicaid through separate federal channels rather than through AHCCCS.

She noted concerns about behavioral health fraud affecting tribal members, stating some citizens have been "kidnapped and placed into sober living homes just for the money, So now we have people that are getting injured because they're not getting the help that they need.”

This comes as Arizona's tribal areas saw major effects. State records show around 30,000 hotline calls and nearly 10,000 requests for immediate housing, meals, or rides. Residents were forced to relocate, some individuals disappeared, and deaths were reported at residential care sites.

"As a nurse, I'm so offended that we're not taking care of the people that need to be taken care of," she added. "We cannot put our heads in the sand and act like there's not fraud, especially when we have people going hungry in this state."

Ongoing Fight

Currently, Shamp has introduced Senate Bill 1398, which would require AHCCCS to provide detailed eligibility data to the legislature.

As of now, only 5% of the fraudulent funds have been recovered.

Senator Shamp’s long fight is still ongoing and urges residents to contact their representatives for further questions.