Feds auditing Minnesota DHS over Medicaid fraud

Federal authorities are conducting an audit of the Minnesota Department of Human Services (DHS) amid allegations of Medicaid fraud.

The U.S. Department of Health and Human Services’ Office of Inspector General first notified DHS officials in December 2023 of an audit into the state’s Early Intensive Developmental and Behavioral Intervention (EIDBI) services for children diagnosed with autism.

RELATED: Hundreds of autism centers popped up to meet demand in Minnesota. Now 85 are under investigation.

5 EYEWITNESS NEWS previously reported that state officials are already investigating dozens of autism centers across Minnesota.

A DHS spokesperson said the department is cooperating with the federal audit and “is focused on rooting out fraud and abuse to protect taxpayer dollars and the people we serve.”

“We have investigated thousands of Medicaid providers in recent years,” the statement reads in part. “DHS regularly provides critical data and information to law enforcement that assists with their actions. DHS did this when we shared data on Housing Stabilization Services providers that ultimately enabled the federal action taken last week against fraudsters.

“As fraud schemes have evolved and become more sophisticated, we partnered with legislators to add new tools and tighten up program requirements. Because we are a regulator ourselves, DHS understands the value outside reviews can bring to enhance internal controls. We will continue to work with state and federal partners, including any additional federal audits, to improve program integrity.”

In July, after federal investigators served search warrants while investigating potential fraud by Housing Stabilization Services providers, Republican state lawmakers requested an audit of DHS programs, claiming “rampant fraud” in the state’s Medicaid program.

Upon receiving confirmation of the ongoing audit of EIDBI services, Rep. Kristin Robbins, R-Maple Grove, said she would provide more information to the OIG to potentially expand its investigation.

“While the details will likely be limited during an active federal investigation, our committee will continue to dig into these issues, follow the facts, and hold the executive branch accountable,” said Robbins, who chairs the House Fraud Prevention and State Agency Oversight Policy Committee. “Minnesotans deserve transparency and accountability, and we will continue to provide updates as new information becomes available.”

Editor’s note: An earlier version of this story incorrectly stated that the U.S. Department of Human Services’ Office of Inspector General opened its audit into EIDBI at the request of Republican state lawmakers. The audit began more than a year and a half prior to the letter being sent.
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