Is Minnesota the Fraud Capital?

Wherever there’s a government program, there is going to be fraud. Past reports have stated that fraud could be as much as 20% in some programs - something I’m been repeating for years. Minnesota has taken that fraud to new extremes. Fraud in Minnesota human services programs is so bad, it’s infamous across the country. One safety net program was so easy to scam, it even attracted tourist, according to Assistant U.S. Attorney, Joe Thompson.

Two Philadelphia men, who shall remained unnamed in my blog, heard that Minnesota’s Housing Stabilization Services program was easy money for fraudsters. They traveled to Minnesota, enrolled their companies into the program, returned to Philly, and submitted fraudulent claims from there. They were so successful that they were able to obtain $3.5 million in fraudulent Medicaid payments… from a non-resident state.

Providers in 14 state-run Medicaid programs have billed $18 billion worth of services since 2018, of which more than half may be fraudulent. Sadly, that’s just the beginning. The actions become even more disgusting. One story I read on the fraud involved a doctor who performed chemo treatments on people who didn’t even have cancer, then billed Medicare for payment. “Trust your doctor” should be a bond, not a hope.

Around 36% of all Minnesota Medicaid dollars comes from the state, while the rest is funded by the federal government. That mean’s that taxpayers all across the country are being robbed by Minnesota’s lax auditing and oversight of assistance programs. Why do I oppose government-run, taxpayer funded assistance? Endless evidence of fraud.

Federal agents raided the Bloomington office of Ultimate Home Health Services, executing a search warrant that is part of a federal investigation into Integrated Community Supports. The program started in 2021 to help disabled adults live more independently in apartments rather than an institution. The program is vulnerable to fraud and costs included payouts of $170 million in 2024.

The ongoing federal investigation found that, instead of providing services, many Integrated Community Supports providers acted more like rental agents, then billed the program for services not provided. Providers are permitted to bill hundreds of dollars a day, often adding up to more than $100,000 per year, per client. On at least one occasion, they billed for services linked to a dead man.

Fraud continues to be evident in Minnesota politics. Gov. Tim Walz, and House and Senate Democrats, criticized the House Fraud Prevention and State Oversight Committee for “playing politics” with fraud. He went on to praise the federal charges and also claimed Minnesota doesn’t tolerate fraud.

Excuse me, Mr. Governor, but apparently you do. You’re in charge of the state, and have been for a while. House and Senate Democrats are also in charge of the state, yet… the fraud is so bad… it attracts tourists. Walz was a vice-presidential candidate, and still has eyes on the White House. Maybe Kamala wasn’t the problem.

This man must never be president – nor should anyone who wants to grow taxpayer-funded, mandated, assistance programs. Government handouts attract endless fraud. True charity is personal, not tax transferable.

Source used: minnesotareformer.com