A Minnesota woman, who works for the state Department of Human Services (DHS), has come forward with concerns about what she describes as incompetence within the department. This follows alarming discoveries of extensive fraud in the state’s health care system.
Faye Bernstein mentioned, in an interview, that she became aware of the high potential for fraud after her promotions to senior roles at DHS in 2018 and 2019. “For a long time, I thought DHS was just, well, a bit careless,” she shared. “But in 2018 and 2019, things escalated. We realized, if there’s no dishonesty today, there might be tomorrow.”
Having worked for DHS for two decades as a contract administrator and compliance officer, Bernstein noted that her leadership position gave her visibility into the contracts being handled by her department. She observed discrepancies that indicated potential fraud.
She expressed, “We were aware that fraud could happen in our contracting process, but it was shocking to find that there were no safeguards in place.” Federal prosecutors estimate that approximately $9 billion was misappropriated by fraudulent organizations masquerading as child care centers, food programs, and medical facilities, with many of those charged being Somali nationals from Minnesota.
When she attempted to raise these issues with a deputy director, she felt dismissed and was told to refrain from asking questions. Bernstein claimed that she experienced retaliation, as her responsibilities were reassigned, effectively moving her from one position to another. “Even the HR staff told me that if a supervisor directs you to do something, you must comply. Otherwise, you might face accusations of insubordination,” she remarked, referring to how any hesitation was met with serious consequences.
Bernstein has been revisiting emails from the public since 2024, many of which warned about the suspected fraud. “I was astonished by the sheer volume of notifications,” she said, reflecting on whether the department had ignored citizens reaching out. “Did we really overlook all these messages?”
The DHS reported that recent federal data revealed Minnesota’s Medicaid program has a significantly lower rate of improper payments compared to the national average—about 2.1% against a 6.1% average. State officials pointed out that this information was gathered before Minnesota adopted further measures aimed at minimizing fraud risks.
Shireen Gandhi, the state’s interim human services secretary, stated, “We aim to make Minnesota a leader in fraud prevention and error detection. This review indicates that we have robust internal controls, and we are continually enhancing them.”
Bernstein, who identifies as a lifelong Democrat, emphasizes that the fraud issue transcends political lines. “This is certainly not a Republican issue,” she insisted. “It’s quite real.”
