Arizona Medicaid Director Quits After Fraud Crackdown Controversy

Carmen Heredia, who led Arizona’s Medicaid agency, resigned under mounting political pressure tied to her handling of a massive fraud scheme. Rogue “addiction centers” allegedly billed hundreds of millions in false claims, exploiting tribal members. In response, Heredia froze payments to over 300 providers, but critics say that wide net also cut off genuine services, leaving at-risk clients stranded. Republican lawmakers hammered Heredia over alleged overreach and signaled they’d block her confirmation. Gov. Katie Hobbs accepted Heredia’s resignation, decrying partisan attacks. Advocates worry the abrupt leadership change may hamper efforts to fix vulnerabilities that allowed the scam to thrive. For now, Arizona’s Medicaid remains in flux—many are uncertain how the state will restore legitimate treatment while clamping down on fraud.