U.S. Attorney says “very possible” half of $18 billion paid out through Medicaid waiver programs are fraudulent

Today the U.S. Attorney’s office announced new fraud charges and reveled the massive scope of fraud through Medicaid waiver billing happening in the state. U.S. Attorney Joe Thompson said they had charged two men with traveling from Philadelphia, PA to Minnesota after hearing how easy it was to defraud the state. A separate case involved a man billing for autism treatment and using some of the funds to buy a semi-trailer.

“Today’s news is possibly the most disturbing news we’ve had so far in exposing the massive schemes that defrauded Minnesotans,” Senate Minority Leader Mark Johnson (East Grand Forks) said. “The systems implemented by DHS was so easily accessed, two individuals came from Philadelphia to Minnesota for the sole purpose of defrauding Minnesotans. Minnesota’s fraud problem is indeed Minnesota’s fraud problem. If people could easily defraud other states, they wouldn’t single out Minnesota. The mounting failures by Governor Tim Walz to stop fraud is costing taxpayers more every day.”

U.S. Attorney Joe Thompson was candid in his assessment that Minnesota has a fraud problem, saying at one point that a significant amount, as much as half, of the $18 billion paid out through 14 Medicaid programs was fraud. “This is a staggering number,” Senate Human Services Committee Republican Lead Senator Jordan Ramusson (Fergus Falls) said. “One dollar of fraud is a dollar taken from someone who needs it, but considering $18 billion has gone out from programs we now know are riddled with fraud; it’s a devastating blow to Minnesotans and everything we expect our government to do.”

Minnesota has seen fraud explode in ways other states have not. Recent federal actions include reviewing SNAP benefits, ghost students pilfering education loans, and a review of Minnesota’s unemployment insurance.