Minnesota (trfnews.i234.me) — Federal investigators say suspected fraud in Minnesota Medicaid services could be massive.
First Assistant U.S. Attorney Joseph H. Thompson said Thursday the total could reach $9 billion or more. He spoke during a news conference in Minneapolis.
Thompson pointed to 14 Medicaid services flagged as “high risk.” He said those programs totaled about $18 billion in claims since 2018. He said “half or more” may be fraudulent.
What prosecutors say is happening
Thompson said some providers billed for services that never happened. He said some companies provided “zero services.” He said money went to travel and luxury purchases.
He also warned that the fraud threatens people who need help. He cited housing support after addiction treatment. He also cited services for children with autism.
New charges and programs under review
Federal officials announced new defendants tied to a housing services scheme. Thompson said some suspects treated Minnesota as “easy money.” He described it as “fraud tourism.”
Investigators also tied parts of the Medicaid probe to the earlier Feeding Our Future case. Prosecutors said that the case involved about $300 million in alleged fraud.
State response
Minnesota DHS Inspector General James Clark called the estimate “shocking.” He urged federal officials to share evidence quickly. He said the state can stop payments when fraud is found.
More information: Read updates from the U.S. Attorney’s Office for the District of Minnesota and the Minnesota Department of Human Services.
I’m Chris Harper reporting for TRF News.