Minnesota officials are implementing a new verification step for payments from high-risk Medicaid programs, but a former law enforcement figure doubts this will make a significant difference. Since 2018, federal estimates suggest that Minnesota taxpayers have lost upwards of $9 billion to fraud.
The Minnesota Department of Human Services (DHS) announced that this added verification will be executed by the healthcare company Optum, which will scrutinize payments before they reach individual providers. If any suspicious activity is detected, it will be referred to the Office of the Inspector General for further inquiry.
Jonathan Gilliam, a former FBI Special Agent, expressed skepticism about this new measure. “Adding extra layers doesn’t help,” he remarked, emphasizing that merely adding one layer won’t effectively combat fraud. “It might prevent some cases, but doesn’t change the overall situation.” He also criticized Governor Tim Walz, claiming he bears some responsibility for the widespread fraud in the state.
This announcement follows federal prosecutors pointing out irregularities in 14 state programs, which reportedly cost Minnesota taxpayers $18 billion since 2018. First Assistant U.S. Attorney Joe Thompson indicated during a news conference that a sizable portion—over half—of that amount is believed to be fraudulent.
Thompson later mentioned that six more individuals had been indicted in relation to housing service fraud, describing one case where the accused allegedly filed $1.4 million in bogus claims and even used some of the funds to purchase virtual currency. Notably, one suspect fled the country after being served with a subpoena.
In a particularly severe case, the Nourishing Our Future program resulted in nearly $250 million in taxpayer losses due to its directors sanctioning fictitious meal services for low-income individuals.
Criminal defense lawyer Sam Bassett remarked that it’s likely someone spotted the fraud well before it escalated to this extent. “We’re still uncovering details,” he noted. “But the evidence suggests that earlier intervention might have averted further issues.”
Attempts to contact Governor Walz’s office and the DHS for responses have been made.
