At Least Half of $18 Billion in Minnesota Medicaid Claims Tied to Fraud: Prosecutor
Half or more of the roughly $18 billion in federal funding that supported 14 Minnesota-run programs since 2018 may have been stolen, a federal prosecutor said on Thursday, describing the massive and multilayered fraud schemes as staggering.
First Assistant U.S. Attorney Joe Thompson said the scale of the fraud puts services at risk for people who need them, including adults leaving addiction treatment centers who need help finding a stable place to live and children with autism who are seeking one-on-one therapy.
While prosecutors typically see fraud manifest as providers overbilling, Thompson said during a news conference in Minneapolis that companies have been created to provide zero services while submitting claims to Medicaid and pocketing federal funds for international travel, luxury vehicles, and lavish lifestyles.
“The magnitude cannot be overstated,” Thompson said. “What we see in Minnesota is not a handful of bad actors committing crimes. It’s a staggering, industrial-scale fraud.”
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