UPDATE: Minnesota Governor Tim Walz and officials from the Department of Human Services (DHS) urgently responded today to recent allegations of Medicaid fraud potentially reaching $9 billion. Officials stated they have no evidence to support such a claim, following the U.S. Attorney’s Office revealing six new defendants in a sweeping fraud investigation.
The U.S. Attorney’s Office announced on December 19, 2023, that an audit by the federal Center for Medicaid and Medicare Services estimated fraud in Minnesota’s Medicaid programs could reach alarming heights. First Assistant U.S. Attorney Joseph Thompson indicated that of the $18 billion in claims since 2018 from 14 high-risk Medicaid programs, he suspects “about half or more” could be fraudulent.
However, Governor Walz and DHS officials firmly stated they have not seen any evidence substantiating the $9 billion figure. “I wouldn’t say it’s wrong, but I haven’t seen any evidence or information to suggest that there’s $9 billion worth of Medicaid fraud,” said James Clark, DHS Inspector General. Walz characterized the figure as “speculation,” calling for proof from federal authorities to substantiate such claims.
“To extrapolate what that number is for sensationalism… doesn’t help us,” Walz emphasized during a news conference at the Capitol. “I need their help to help us get a realistic perception on this.”
DHS Deputy Commissioner and Medicaid Director John Connolly echoed these sentiments, estimating fraud in Medicaid programs at “tens of millions of dollars.” He clarified that this estimate does not account for other state agencies, like the Department of Education, which is grappling with its own fraud issues, including an estimated $250 million related to the Feeding Our Future scandal.
Walz revealed that the state has already taken significant measures to combat fraud. “In June, I was given the authority to stop payments… We stopped payments in July and turned the case over to law enforcement,” he pointed out, emphasizing that the state is actively working to address these challenges.
While the federal investigation continues, Walz expressed concern for legitimate providers affected by the allegations. “Those programs that provide incredible services are now being put at a disadvantage,” he stated, indicating that the ongoing scrutiny is impacting providers who are delivering essential services.
The discourse surrounding Medicaid fraud has taken a partisan turn in the Minnesota legislature, with accusations of lack of trust and transparency between parties. Kristin Robbins, chair of the House Fraud Prevention and State Agency Oversight Policy Committee, pointed to concerns about whistleblower retaliation within the department, highlighting the complexities of addressing fraud effectively.
As this situation unfolds, authorities are under pressure to deliver concrete evidence regarding the alleged fraud and to ensure that any legitimate services are not disrupted. The governor’s call for collaboration with federal prosecutors remains a crucial step in seeking clarity and resolution in this urgent matter.
Authorities continue to monitor the situation closely, with the public and state officials alike keenly awaiting further developments. The urgency of this issue is clear as Minnesota grapples with significant implications for its Medicaid programs and the integrity of its social services.
