Governor accepts resignations of AHCCCS and DHS directors; senator raises sober‑living fraud concerns and praises outgoing officials

A written communication from Governor Katie Hobbs was read on the Senate floor notifying the chamber that the governor had accepted the resignations of Carmen Heredia as director of the Arizona Healthcare Cost Containment System (AHCCCS) administration and Jennifer Kunico as director of the Arizona Department of Health Services. The message said the governor will make new nominations in due course.

Later in the session, Senator Toffley used a point of personal privilege to describe ongoing concerns about fraud and abuse in behavioral-health and sober-living facilities. Toffley said she had submitted written communications and calls to previous administrations and state officials about alleged exploitation and said those attempts had gone unanswered. On the floor she attributed much of the investigative and corrective work to the outgoing officials, saying they had shown courage in trying to "unwind this huge tangle" and specifically expressed appreciation for Carmen Heredia and Jeannie Koneko (names as spoken on the floor). Toffley also stated a figure for alleged improper payments, saying "$2,500,000,000 just on access alone," and noted that private insurers had observed similar problems.

The governor's letter was entered into the Senate journal; the Senate did not take a floor vote on the resignations during the session. The governor's communication advised the chamber that new nominations will be provided later.