Latest news with #HousingStabilizationServices
Yahoo
03-08-2025
- Business
- Yahoo
Feds raid Minnesota businesses, homes in coordinated effort to confront the state's massive Medicare ‘fraud problem'
Minnesota's Housing Stabilization Services (HSS) operates under Medicaid to provide vital housing assistance for seniors and individuals with disabilities. While the program serves an essential need, it remains vulnerable to exploitation by certain providers. According to a recent KARE 11 investigation, authorities have conducted searches at eight Minnesota locations linked to HSS as part of an investigation into what officials describe as a "massive scheme" to defraud the program. A 93-page affidavit reveals that multiple HSS companies fraudulently billed Medicaid for millions of dollars in services that recipients claim they never received. Measures are now being implemented to prevent such fraudulent activities in the future. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it A major scheme, unveiled As KARE reports, Minnesota was the first state to provide Medicaid coverage for HSS services in 2020. The state estimated the cost of the program at $2.6 million per year. By 2024, Medicaid spending on HSS reached more than $104 million, per KARE's analysis. And a big part of that stemmed from fraudulent charges. 'Minnesota has a fraud problem – and not a small one,' Acting U.S. Attorney Joseph H. Thompson told KARE. 'For too long, organized fraud schemes like this have flourished in plain sight, draining public resources dry… This state needs to confront the scale of its fraud problem." For example, the inquiry uncovered that 22 HSS providers operating from a single location — the Griggs-Midway Building in St. Paul — collectively received $8 million in Medicaid reimbursements for services they allegedly delivered. These funds ultimately come from taxpayer contributions. One HSS provider called Brilliant Minds Services, which was located in the Griggs-Midway Building, allegedly defrauded Medicaid by charging $51,000 for services that were never provided to four clients. A woman identified as Rachel reportedly called Brilliant Minds Services "a total scam," contradicting the company's claims that they had provided her with assistance. "I never met with them. I never talked to them on the phone," she told KARE. Yet the company billed Medicaid $14,000 in her name between August of 2023 and April of 2024. And this is just one example of many where an HSS company has billed for services it did not provide. In response to the ongoing investigation, stop-payment orders were issued for Brilliant Minds Services and other companies suspected of similar fraud. Minnesota lawmakers also implemented changes to the HSS program, requiring stricter oversight. Republican State Rep. Kristin Robbins, chair of the House Fraud Prevention and State Agency Oversight Committee, said in a statement, "Our committee has repeatedly raised concerns about the rapid expansion of benefit programs without adequate oversight. This case highlights the urgent need for stronger vetting of providers, verifying eligibility, and tighter controls on billing." Read more: Nervous about the stock market in 2025? Find out how you can Medicaid and Medicare fraud is an ongoing problem The situation in Minnesota is by no means the only instance of Medicaid or related fraud. Recently, NRP reported that the Justice Department charged a Pakistani national for a $650 million Medicaid fraud scheme in Arizona. The defendant conspired with more than 40 addiction clinics to bill the state for services that were never rendered. Meanwhile, the Justice Department reported in late June that 15 people were charged with over $10.6 billion in fraudulent Medicare and Medicaid billing in New York. According to the National Health Care Anti-Fraud Association, fraudulent payments account for between 3% and 10% of total healthcare expenditure in the United States. This translates to potential annual losses exceeding $300 billion due to healthcare fraud. The Department of Health and Human Service's Office of Inspector General found that in 2024, there were 817 fraud convictions related to Medicaid, with $1.4 billion in funding recovered. The U.S. Government Accountability Office (GAO) says that steps are being taken to address healthcare fraud. For one thing, improved fraud prevention measures were implemented for Medicare, resulting in stopped payments that produced almost $2 billion in savings over a five-year period. The Centers for Medicare & Medicaid Services also worked with states and audit professionals to increase oversight for Medicaid providers, resulting in 893 investigations between 2019 and 2021. The GAO says there's more than can be done to prevent Medicaid and Medicare fraud, including: Relying on state auditors for further Medicaid oversight Assessing the quality of telehealth services for Medicare enrollees Reviewing prepayment claims for Medicare Expanding Medicaid and Medicare provider screenings It's also important for individuals to know what Medicaid and Medicare fraud look like. It can include: Billing for services never rendered Billing for more expensive services than what were provided Duplicate billing Individuals enrolled in Medicaid or Medicare should carefully scrutinize their medical bills and benefit explanations to verify accuracy. Any suspicious charges or discrepancies should be immediately questioned and reported. This vigilance not only protects patients from unnecessary personal expenses but also safeguards taxpayer funds from fraudulent billing practices. Individuals who discover instances of Medicaid or Medicare fraud can submit reports through the official HHS Office of Inspector General website. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
CBS News
29-07-2025
- Politics
- CBS News
Minnesota pauses payments to 50 housing stability providers amid fraud investigation
Minnesota Gov. Tim Walz said Monday he paused payments to dozens of the state's housing stabilization providers as federal agents investigate a "massive" fraud scheme connected to the program. Under a new Minnesota law that went into effect earlier this month, state agencies have the authority to withhold funding from organizations for up to 60 days if there is significant evidence to suggest they have committed fraud. A search warrant filed with the U.S. District Court for Minnesota details a fraud investigation tied to the Housing Stabilization Services, a newer Minnesota Medical Assistance benefit, which is set up to help find and maintain homes for people with disabilities and the elderly. What was estimated in 2020 to cost taxpayers $2.5 million a year had topped $100 million. The FBI called the housing program "extremely vulnerable to fraud." Walz told reporters Monday he used the "tools" approved by the Minnesota Legislature to stop payments to "most of the people involved in this program." He later said that 50 of the state's largest housing stability providers "will not be paid." He expects some of them will sue to receive their payments. Others, he said, will have to be patient for their funds to come through. "There is going to be legitimate organizations and legitimate need for people in good programs that are gonna just have to be a little bit slower and a little more barriers in place. Because it's proven right now the folks can find the loopholes," he said. The Minnesota Department of Human Services confirmed they stopped payments to 43 providers on Monday. Payments to seven others had been paused prior to that week as a result of a "billing data analysis" and "investigations conducted by the DHS's Office of Inspector General." "In March, DHS initiated a comprehensive data analytics project, reviewing HSS provider data, including billing records, in new ways. As a result, we have stopped payments and provided information to our law enforcement partners," said temporary DHS Commissioner Shireen Gandhi in a statement to WCCO. "Any HSS providers scheming to steal from our public programs are being stopped from receiving further public payment and with the help of law enforcement partners, they will be prosecuted to the fullest extent of the law." Starting in August, housing stabilization providers will be subject to additional documentation requirements, the DHS said in a statement. The new Minnesota law to allow agencies to withhold funds was passed in the wake of the $250 million Feeding Our Future scandal, which prosecutors have called the largest pandemic fraud case in the country. Autism support centers are also subject to a separate fraud investigation. The ringleader of the food fraud scheme, Aimee Bock, was convicted of conspiracy to commit wire fraud and conspiracy to commit federal programs bribery for taking millions of dollars meant to feed hungry children. Seventy people are charged in the scheme, of whom 48 have been convicted. "These people are being arrested and they're going to prison," Walz added on Monday. "And right now the people involved in this, you will be going to prison. The U.S. attorney is on it."Caroline Cummings contributed to this report.
Axios
24-07-2025
- Politics
- Axios
Top federal prosecutor says Minnesota's fraud total could surpass $1 billion
Minnesota's acting U.S. Attorney Joe Thompson says his office has prosecuted a half billion dollars in fraud in state programs in recent years — and the total tally could double by the time it's done. The latest: FBI agents searched several properties last week in connection with what they called "massive" fraud involving Minnesota's Housing Stabilization Services program. The program, which started in 2020 and provided Medicaid dollars for housing for seniors and people with disabilities, paid out over $100 million in claims last year, over 38 times the initial cost estimates. The big picture: The latest investigation comes on top of the $250 million-plus Feeding Our Future scheme, which has already resulted in 48 guilty pleas or convictions. A separate Medicaid-funded program meant to serve people with autism continues to face scrutiny amid fraud concerns and a 2024 FBI raid. What they're saying: "It's an extraordinary problem, the fraud that's pervasive in this state," Thompson told KSTP in an interview this week. Prosecutors have called the new housing stabilization program, one of the first of its kind nationwide, "uniquely vulnerable to fraud." The other side: DFL Gov. Tim Walz defended his administration's handling of the issue in an interview with Axios this week, saying the prosecutions are "counterintuitively a good thing" because it means state and federal investigators are catching — and stopping — fraud. "We want to help people, but we need to be skeptical. And if there's any thought whatsoever [that] these people are doing this, we need to refer them over [to law enforcement]," he said. Zoom in: Walz noted that a recent change in law allowed the state Department of Human Services to freeze payments amid fraud concerns in the housing stabilization program. An FBI search warrant confirms that DHS stopped payments to at least two providers in May, shortly after the law passed. But by that point, the providers had already received millions in reimbursements for what investigators say were false claims, per a federal search warrant. Friction point: Once the money's out the door, it's difficult to claw back. The government has recovered just $60 million in the Feeding our Future case, per KSTP. What we're watching: DHS told the Star Tribune it's opened about 40 investigations into providers connected to a single building in the housing aid case "and stopped payments everywhere we have seen evidence of fraud." "You will see more people going to jail," Walz said of the broader fraud crackdown.
