Minnesota Department of Human Services

Corey Sauer donated $500,000 to prevent the closure of two Vail Communities clubhouses for people with mental illness. The Minnesota Department of Human Services also provided six months of bridge funding, allowing the programs to operate until sustainable funding is secured. The clubhouses offer social, employment, and support services in St. Paul, Minneapolis, and Hopkins.

Abdifitah Mohamud Mohamed, linked to Brilliant Minds LLC, pleaded guilty to wire fraud in the Minnesota Housing Stabilization Services (HSS) Medicaid fraud case. The HSS program, designed to assist vulnerable adults with housing, has been plagued by fraud allegations, leading to over $2.3 million in fraudulent billings for Mohamed's group and up to $100 million annually from providers. Federal authorities have halted payments to multiple providers and plan to terminate the HSS program.

A Minnesota Senate committee reported that two-thirds of reviewed Medicaid providers received disenrollment notices, though officials clarified this does not confirm fraud. Brian Nicholson, running mate for Kendall Qualls, defended his Jan. 6, 2021, presence at the U.S. Capitol, stating he left when violence erupted. Qualls dismissed a critical report as a 'hit piece.' Peggy Flanagan, a U.S. Senate candidate, discussed her stance on fraud and ICE in a studio interview.

Minnesota's Department of Human Services reviewed nearly 5,500 social service providers in high-risk areas like autism and elderly care over five months, leading to widespread disruptions. Nearly two-thirds of providers received disenrollment notices due to paperwork issues, site visit failures, or background checks, causing payment interruptions and uncertainty for families relying on these services.

Minnesota's Department of Human Services is revalidating Medicaid and Medicare providers, leading to the disenrollment of over 3,400 providers due to paperwork, background checks, or site visits. Only 200 have been reapproved, causing delays for new patients and service renewals, with incomplete documentation further slowing the process.

Minnesota’s Medicaid director is testifying before Congress about fraud in the state’s Medicaid program, which faces a $1 billion loss estimate from January 2022 to October 2025. Federal officials deferred $350 million in Medicaid funding after an audit found unusually high spending and rapid growth in 14 high-risk programs.

Hundreds attended a town hall in Big Lake, Minnesota, expressing concerns that a state fraud crackdown on disability services is harming legitimate providers and families. The meeting, hosted by Options, Inc., highlighted fears of service cuts as some providers remain in limbo despite efforts to comply with revalidation processes.

Medicaid funding cuts threaten Recovering Hope Treatment Center in Mora, Minnesota, a facility where women with substance use disorder live with their infants and young children. The center, which relies on Medicaid, faces potential closure after failing a state revalidation process amid federal scrutiny over fraud scandals linked to President Donald Trump’s second term.

Nexus Family Healing in East Bethel reached a settlement agreement with the Minnesota Department of Human Services (DHS), avoiding the suspension of its youth psychiatric facility’s license. The agreement requires Nexus to address safety violations, limit resident numbers, and implement staff and facility improvements, allowing operations to continue under new terms.

The Minnesota Department of Human Services disenrolled providers in 13 Medicaid programs to comply with federal fraud concerns, but providers appealing their disenrollment can receive temporary funding during the process. The action, aimed at addressing Trump administration demands over Medicaid fraud, resulted in 3,411 providers being cut off, though they can bill Medicaid for services up to May's disenrollment date.

More than 3,400 Minnesota Medicaid providers were notified of disenrollment due to incomplete paperwork, failed verification, or background checks during a state-led revalidation project. The review, aimed at combating fraud and complying with federal requirements, affected 61% of 5,583 providers examined.

Minnesota Medicaid operator Arnold Kubei's license has been suspended due to allegations of failing to provide services to vulnerable clients. Kubei's companies were expected to help find community-based housing for the disabled and other people who have difficulty finding permanent housing. The Minnesota Department of Human Services is investigating allegations of fraud against Kubei's businesses.

Minnesota Medicaid operator Arnold Kubei's license is suspended due to allegations of failing to provide services to vulnerable clients. His companies were paid to deliver services but allegedly failed to do so. The Minnesota Department of Human Services is investigating the matter.

Minnesota Governor Tim Walz demoted the state Department of Human Services commissioner after 70 days in the role due to a funding battle with the Trump administration over allegations of Medicaid fraud. The commissioner, Shireen Gandhi, was demoted to deputy commissioner. The federal government had paused $259.5 million in Medicaid funds for Minnesota.

Minnesota Governor Tim Walz removed MNDHS Commissioner Shireen Gandhi on the eve of a hearing over a fraud scandal involving hundreds of millions lost to fraud in social services programs. The scandal involves alleged fraud network connected to the Somali community in Minneapolis. Gandhi was demoted to a deputy commissioner role within MNDHS.

A former Minnesota Department of Human Services investigator alleged that state officials attempted to suppress his 2017 investigation into childcare fraud by demanding he delete portions of a report. Jay Swanson testified that a senior official ordered him to redirect findings to DHS instead of the Office of the Legislative Auditor, leading to a confrontation where he was threatened with retaliation. The allegations coincided with an FBI raid on Minneapolis childcare facilities, including the Quality Learning Center linked to a 2017 fraud indictment.