By December 2025, the Kentucky attorney general’s office said Medicaid fraud in drug treatment had become a primary “area of concern.” Beshear has been unapologetic about state spending on drug treatment. He believes Beshear’s administration should’ve done more to rein in the drug treatment industry’s “explosive growth.” That year ARC was paid a record $103 million by Kentucky Medicaid, mostly for services Medicaid insurers warned were being abused. During the 2025 legislative session, they revoked the governor’s power to make changes to Kentucky Medicaid without their permission.