Be aware and report fraudulent activity to the Magellan Special Investigations Unit hotline at 1-800-755-0850 (TTY 711) or email at SIU@MagellanHealth.com. This scheme targets Native American individuals in need of mental health or substance use treatment. Scammers posing as healthcare providers recruit Native Medicaid members into fake treatment programs, exploiting their need for care and support.

How the scam works
Recruiters approach Native individuals off the reservation at places like convenience stores, grocery stores, liquor stores, and office buildings. They offer help with sobriety, mental health treatment, rides home, food, clothing, or even money to gain trust. Once engaged, individuals are taken through a fraudulent intake process to establish care at an illegitimate outpatient treatment center or sober home.

Many of these recruiters are former employees of legitimate treatment centers who now work for fraudulent facilities. Disturbingly, some even provide alcohol to clients during transport or while in treatment, further exploiting their vulnerability. They may also isolate individuals by cutting off contact with family, friends, and their community.

Signs of fraudulent treatment centers

• Targeting Native Americans in vulnerable situations (intoxicated, homeless, or in crisis).
• Offering money, free food, or gifts to convince individuals to participate.
• Lack of legitimate behavioral health or addiction treatment services.
• Restricting contact with family and community support systems.
• Providing alcohol while claiming to offer sobriety services.

Treatment centers will not target or reach out to an individual unsolicited. 

Protect Native Medicaid members
This fraud not only harms individuals seeking care but also misuses critical healthcare resources meant to serve Native communities. If you suspect fraudulent activity, report it immediately to the appropriate state or federal agencies.

To report suspected fraud, please contact Magellan at 1-855-202-0983. Together, we can help protect Native communities and ensure they receive the ethical, high-quality care they deserve.

Sources: 

• Consumer Alert: Fraud Scheme Targeting Native American Communities in Behavioral Health Treatment Centers | Office of Inspector General | Government Oversight | U.S. Department of Health and Human Services 
• Preying on a People: Inside the scheme of trafficking, health care fraud that victimizes Native Americans | FOX 10 Phoenix 
• Blackfeet Nation in Montana declares state of emergency amid Arizona Medicaid scheme | FOX 10 Phoenix 
• Whispering Creek Health takes on substance abuse and fraud in Native American communities - AZ Big Media 
• Campaign warns of Medicaid scam targeting homeless Native Americans | Local News | santafenewmexican.com 
• 3 indicted on fraud-related charges in a Arizona Medicaid billing probe | FOX 10 Phoenix 
• Operation Rainbow Bridge: Building Bridges to Bring You Home