January 1, Minnesota’s Medicaid Fraud Check Raises Questions

Wyatt’s Take

• Minnesota is adding new checks to Medicaid payments, hoping to stop rampant fraud.
• A former FBI agent says the new system won’t fix the problem.
• Taxpayers have lost billions, and experts say leaders failed to act in time.

Officials in Minnesota announced new steps to verify payments in their Medicaid programs, targeting those most at risk for cheating.

A private company, Optum, will now review payments before money goes out to providers, and suspected fraud will be reported for more investigation.

But former FBI Special Agent Jonathan Gilliam doubts this new layer will help.

“Putting an extra layer in is not going to help,” Gilliam said. “And one layer is not gonna stop any, it may stop one part of the fraud, it’s not really gonna make any difference overall.”

The state made these changes after federal prosecutors said at least 14 Medicaid programs in Minnesota had fraud.

Since 2018, taxpayers have paid $18 billion for these programs, and authorities say half or more may be fraudulent claims.

First Assistant U.S. Attorney Joe Thompson said,

“When I say significant, I’m talking in the order of half or more. But we’ll see. I think a significant portion.”

Recent charges include a person who stole $1.4 million using fake claims, then bought cryptocurrency and escaped overseas.

Another well-known case, Feeding Our Future, cost citizens about $250 million for fake meal services that never reached those in need.

Criminal defense attorney Sam Bassett said the state should have caught these problems sooner.

“Maybe this should have been detected much sooner to prevent continued violations,” Bassett said.

Everyday folks in Minnesota are left wondering if these new audits will really protect their hard-earned dollars or just act as window dressing.

Wyatt Matters

Middle Americans expect honesty and good stewardship of their tax dollars.

When those in charge don’t act fast or strong enough, it puts the burden on working families who play by the rules.

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