Big: FBI Indicts 15 in $90M Minnesota Medicaid Fraud Scheme

AP Photo/Mark Schiefelbein

And so, the indictments on the fraud front just keep rolling in, and yes, this is what we voted for. In the latest, 15 people have been indicted in a fraud scheme in (where else) Minnesota, that may have seen the alleged perps defraud the American taxpayers to the tune of $90 million.

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That is, as someone once said, a big freakin' deal.

Director Patel's post is on the long side for X, but it's worth the look:

Today - 15 individuals have been indicted for over $90 million in an alleged massive healthcare fraud scheme in Minnesota, after a sweeping FBI investigation with @TheJusticeDept and our Interagency Partners.  

These charges involve the two LARGEST Medicaid fraud cases ever charged in this district and first-of-their kind charges involving 7 additional Medicaid programs. 

As alleged, the defendants defrauded Minnesota public healthcare resources for tens of millions, targeting programs such as Housing Stabilization Services, Child Care, Medicaid programs, Individualized Home Supports (IHS), and more.  

In one case, defendants even developed a scheme worth over $40 million to target the Early Intensive Developmental and Behavioral Intervention (EIDBI) – an autism healthcare program - paying kickbacks to parents who fraudulently used autism centers to diagnose children with autism regardless of medical necessity, and billing for services not actually provided. This not only defrauded taxpayers, but robbed valuable resources from families truly in need. 

President Trump gave this law enforcement team a mandate to investigate and systematically dismantle this exact kind of public fraud in America – which grossly abuses and mismanages money from hardworking American taxpayers - and that’s exactly what we’re doing. Today’s indictment in a massive moment in this effort. 

More to come. 

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That's a good thing; these indictments should be followed by a swift trial and, if the accused are convicted, lengthy prison terms. This kind of thing, this kind of cynical defrauding of our healthcare system, cannot be allowed.

Read More: The Hammer Comes Down As Minnesota Fraud Queen Gets Massive Sentence – but the Story Is Far From Over

Big, Beautiful New Win: Vance Task Force Halts $1.4B in Hospice Fraud


Secretary of Health and Human Services Robert F. Kennedy Jr. had this to say:

Investigators uncovered brazen schemes that billed taxpayers for non-existent services, fraudulent diagnoses, and fake care while criminals enriched themselves at public expense. Every fraudulent autism diagnosis steals time, care, and resources from the children for whom this program was denied (sic) and who desperately need their care. Families with autistic children already face enormous challenges navigating therapies, specialists, and support systems. Fraud makes those barriers even steeper. 

America is facing a real autism crisis. Today, approximately one in every 31 children is diagnosed with Autism Spectrum Disorder. Medicaid finances a significant share of autism-related services nationwide. And spending has risen dramatically over the last decade, and a lot of that spending is because of fraud. When criminals exploit these programs, taxpayers lose billions, and very vulnerable children lose their access to care. Healthcare fraud now costs the United States tens of billions of dollars every year. Some estimates place the broader cost of healthcare fraud and improper payments at $100 billion annually. That fraud drives up healthcare costs for all Americans. It weakens public trust, it drains taxpayer resources, and threatens the long-term stability of both Medicaid and Medicare. If we fail to confront fraud aggressively, these programs will not survive for future generations in the form Americans rely upon them today.

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Here is the real crux of the issue: "...it weakens public trust." These kinds of fraud, this kind of ripping off of the American taxpayer at the expense of the most vulnerable among us, pose the very real danger of transforming our nation from a high-trust culture to a low-trust culture. This also diverts money from patients who are depending on these programs. 

We can argue all day long about our public financing of healthcare; at which level of government any such funding should come from, how it should be administered, and so on. But this matter is outside any of those discussions. These people are accused of serious crimes, crimes against children, against patients, against families, and against the American taxpayers. The system is as it is, for better or for worse, and we cannot - must not - tolerate this kind of blatant fraud.

Fortunately, we now have a law-enforcement apparatus that is busily engaged in rooting out the fraud. 

Not yet tired of winning. Not by a long shot.

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