Minnesota House Minority Leader Furious Over New Reports Surrounding Medical Assistance Fraud Allegations at Autism Centers

(KNSI) — More fraud allegations have surfaced in Minnesota, this time with certain autism service providers.

The Department of Human Services is looking into more than a dozen autism centers due to potential Medicaid fraud, according to the Minnesota Reformer. The Reformer reported in June the FBI is investigating the allegations.

Reports show that the number of providers has increased by 700% in the last five years, and payments to those providers have exploded by 3,000%.

House Minority Leader Representative Lisa Demuth (R-Cold Spring) has been hammering the Walz administration for fraud, which she says he has allowed to run rampant. She cites especially the Feeding Our Future case, in which 70 individuals are accused of bilking the U.S. Department of Agriculture’s Child Nutrition Programs out of $250 million.

A press release from Demuth’s office says sources who administer Medical Assistance see widespread concern about fraud in the program. MA is a state and federal health plan for low income residents and residents with disabilities. The Reformer’s article cited DHS Assistant Commissioner Natasha Merz, who described the growth as “pretty consistent” with other DHS programs. Merz added, “I don’t think we are surprised or particularly disturbed by the rate of growth. Anytime we’re operating Medicaid programs, we have to ensure we’re good stewards of taxpayer money, and that we have the right level of protections in place against fraud, waste and abuse.”

Demuth is infuriated by the article and the silence from the top down about the investigation, which Governor Tim Walz told the Star Tribune he was not aware of.

“It’s troubling that we are only learning about these developments through the media and have not received any information from the Department of Human Services, especially when there are two sitting DFL legislators directly connected to this program and the DHS investigative unit,” said Demuth. “There have also been shifting explanations by DHS – two weeks ago an Assistant Commissioner stated that DHS was not “surprised or particularly disturbed” by the rate of growth. Now today we learn that DHS is actively investigating this potentially fraud-riddled program. Which is it? When did these investigations begin? Democrats should be holding hearings and demanding answers rather than continuing to make excuses for the Walz administration’s failure to prevent fraud and hold those who enable it accountable.”

Autism centers are not licensed by the state. Providers sign up to get reimbursements through MA, and the DHS then verifies the center’s credentials, but are not out fact checking the centers in person. It’s similar to how the Feeding Our Future fraud was allowed to continue. According to an audit, the Minnesota Department of Education, which oversaw the USDA’s two child nutrition programs, did not conduct monitoring visits and compliance reviews at feeding sites, either didn’t follow up on complaints about Feeding Our Future or conducted inadequate investigations.

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