E&C Leaders Launch Investigation into Ongoing Medicaid Fraud in Minnesota
WASHINGTON, D.C. – Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, Congressman John Joyce, M.D. (PA-13), Chairman of the Energy and Commerce Subcommittee on Oversight and Investigations, and Congressman Morgan Griffith (VA-09), Chairman of the Energy and Commerce Subcommittee on Health, are requesting communications, documents, and information from Minnesota Governor Tim Walz and the Temporary Commissioner of Minnesota’s Department of Human Services, Shireen Gandhi, to better understand the ongoing Medicaid fraud occurring in the state of Minnesota and actions the state is taking to strengthen program integrity.
The unprecedented fraud scheme in Minnesota, which has potentially been ** ongoing ** since 2013, has revealed a swath of criminal schemes, including overbilling, false records, identity theft, and phantom claims in Medicaid social service and health programs for the elderly and disabled, people struggling with addiction, and homelessness. Chairmen Guthrie, Joyce, and Griffith issued the following statement regarding ** the letter’s ** content:
“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,” said Chairmen Guthrie, Joyce, and Griffith. “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.”
The Trump Administration has taken concrete steps to address the fraud being uncovered in Minnesota. Complementary to that work, Congress has a responsibility to oversee federal programs, like Medicaid, to ensure precious dollars and resources are being spent appropriately to deliver quality and necessary care.
BACKGROUND:
Glaring accounts of waste, fraud, and abuse in Minnesota’s Medicaid social service and health programs have resulted in billions of taxpayer dollars going straight to the pockets of fraudsters and foreign actors.
- Ongoing investigations indicate that fraudulent provider schemes are particularly prevalent in health and community-based service programs, including residential drug and alcohol treatment, home health, housing, and autism service programs.
Unfortunately, Minnesota’s Medicaid program lacks adequate oversight and fraud control measures, and state officials have neglected to swiftly identify and address vulnerabilities in programs.
- Fraud experts note that fraudsters often target states like Minnesota, which tend to have the “weakest ID checks, fastest payouts, and lowest audit risk,” when looking to establish fraud schemes.
In July 2025, the Working Families Tax Cuts legislation was signed into law by President Trump, including critical provisions to target waste, fraud, and abuse within the Medicaid program—several of which help prevent the fraud schemes that occurred in Minnesota from happening again.
In response to these fraudulent practices, CMS is auditing the Minnesota Medicaid program, freezing provider enrollment, and deferring payments for 14 high-risk programs, including adult companion, rehabilitative mental health services, individualized home supports, residential treatment services, among others—which, alone, cost taxpayers $3.75 billion annually.
CMS recently briefed the Committee on what is currently known about the Medicaid fraud in Minnesota and actions CMS has taken to date. This further underscored the need for the Committee’s oversight to ensure program integrity.
