Minnesota Suspends 77 Housing Providers Amid Fraud Probe
Minnesota Suspends 77 Housing Providers Amid Fraud Probe

Minnesota Suspends 77 Housing Providers Amid Fraud Probe

News summary

Minnesota Governor Tim Walz has suspended payments to 77 providers in the state's Housing Stabilization Services program amid a sweeping federal and state investigation into Medicaid fraud. The Department of Human Services has sought federal assistance to terminate the program, which saw annual spending escalate from $2.6 million in 2017 to over $107 million by 2024. Federal agents, including the FBI and U.S. Attorney's Office, have described the scheme as 'massive,' executing raids and unsealing warrants that detail millions in fraudulent claims for unprovided services. The program, intended to help elderly and disabled Minnesotans secure housing, has come under fire for lax controls and eligibility requirements. Investigative reporting exposed forged signatures, inflated billing, and other fraudulent practices, sparking calls from lawmakers for a federal audit of Medicaid spending in Minnesota. State officials are now working to redesign the program with stronger safeguards, acknowledging possible delays for legitimate recipients.

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Last Updated
9 hours ago
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