Congressman Brett Guthrie, Chairman of the House Committee on Energy and Commerce, along with Congressman John Joyce, M.D., Chairman of the Subcommittee on Oversight and Investigations, and Congressman Morgan Griffith, Chairman of the Subcommittee on Health, have sent a request to Minnesota Governor Tim Walz and Shireen Gandhi, Temporary Commissioner of Minnesota’s Department of Human Services. The lawmakers are seeking communications, documents, and information to better understand ongoing Medicaid fraud in Minnesota and the state's efforts to strengthen program integrity.
The fraud scheme in Minnesota has reportedly been active since 2013. It involves various criminal activities such as overbilling, false records, identity theft, and phantom claims related to Medicaid social service and health programs for vulnerable groups including the elderly, disabled individuals, people struggling with addiction, and those experiencing homelessness.
Chairmen Guthrie, Joyce, and Griffith stated: “The extensive fraud schemes being perpetrated in Minnesota have wreaked havoc on government-funded health programs. We have an obligation to ensure finite taxpayer dollars are being used responsibly, and that the most vulnerable Americans are not being exploited to the benefit of fraudsters and foreign actors. As members of Congress and this Committee, our track record has made our continued commitment to ridding government programs of waste, fraud, mismanagement, and abuse clear. This letter is the next step in the Committee’s work to root out fraud and restore program integrity in our federal health programs nationwide.”
Federal officials have taken steps to address these issues. The Trump Administration initiated measures aimed at combating Medicaid fraud in Minnesota. Congress continues its oversight role over federal programs like Medicaid to ensure resources are used appropriately.
According to investigations referenced by committee leaders, billions in taxpayer dollars from Minnesota's Medicaid social service and health programs have been lost due to fraudulent activity by both domestic actors and individuals abroad. These fraudulent provider schemes are especially prevalent in community-based service programs such as residential drug treatment centers, home health care services, housing assistance programs, and autism services.
Reports indicate that states with less stringent identification checks or audit procedures—such as Minnesota—are more frequently targeted by fraudsters looking for fast payouts with minimal risk of detection.
In July 2025, President Trump signed into law the Working Families Tax Cuts legislation. This law included provisions specifically designed to combat waste, fraud, and abuse within Medicaid; some measures were intended to prevent similar schemes from recurring in Minnesota.
In response to ongoing fraudulent practices within its Medicaid system, CMS (Centers for Medicare & Medicaid Services) is conducting an audit of the program in Minnesota. Actions include freezing new provider enrollments and deferring payments for 14 high-risk service areas—including adult companion services; rehabilitative mental health; individualized home supports; residential treatment—which together cost taxpayers $3.75 billion annually.
CMS has also briefed members of Congress about what is currently known regarding Medicaid fraud in Minnesota as well as actions already taken at the federal level. Lawmakers argue that this briefing highlights a continued need for congressional oversight to maintain program integrity.
