| FOR IMMEDIATE RELEASE Date: April 21, 2026 Contact: Tyler Newcombe Tyler.Newcombe@mt.gov |
| April 21, 2026 FOR IMMEDIATE RELEASE Helena, Mont. — Montana State Auditor and Commissioner of Insurance James Brown announces that his agency has stopped an additional $14 million in fraudulent claims flowing from the previously identified Obamacare fraud scheme that targeted Montana’s native communities. Adding the $14 million in stopped payments to the previous total from January of 2026, Brown has now clawed back $37.3 million of the nearly $55 million in wrongful billing identified by his office. Obamacare allows tribal members to enroll year-round with no waiting period. Fraudulent out-of-state treatment providers abused this provision to (1) convince members of Montana’s native communities to disenroll from Medicaid, (2) enroll them in Obamacare using fake information, (3) transport them across state lines, and (4) bill Montana insurance for treatments that never occurred, were inadequate, unnecessary, or at inflated costs. After nearly a year-long investigation, the Auditor’s office identified $54.7 million in fraudulent claims related to the scheme and secured $23.3 million in rescissions by January 2026. The office has identified 207 suspected fraudulent insurance enrollments and rescinded 126 policies to date – up from 80 in January. “These so-called treatment centers thought they could make a quick dollar off the back of Montana’s native communities by taking advantage of gaps in local addiction treatment services, limited healthcare infrastructure on reservations, and the nature of Obamacare,” Auditor James Brown said. “My office is working closely with tribal, state, and federal partners to put an end to this despicable and abusive con.” Brown’s investigation determined that “body brokers” targeted homeless campsites on or near reservations, promising vulnerable persons free luxury rehab, transportation, housing, and cash incentives. Some victims were given alcohol or drugs during transport to keep compliant. These victims were then kept in substandard conditions, moved between facilities, and abandoned far from home without resources to return, potentially contributing to the scourge of missing and murdered indigenous persons. Warning signs of the scheme include: unsolicited offers of treatment or recovery services; pressure to change or drop insurance coverage (e.g. from Medicaid to Obamacare); promises of free transportation to out-of-state facilities; and unfamiliar individuals with large vans visiting communities. Reputable centers never recruit patients in an unsolicited manner or offer incentives for signing up for insurance coverage. For more information on Auditor Brown’s work and resources related to Montana’s native communities, visit https://csimt.gov/indian-country-resources/. ### 840 Helena Avenue, Helena, Montana 59601 (main fax) 406.444.3413 I (securities fax) 406.444.5558 (insurance consumer services fax) 406.444.1980 I (legal fax) 406.444.3499 (phone) 800.332.6148 or 406.444.2040 I (email) csi@mt.gov I (web) www.csimt.gov |
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