Minnesota Autism, Disabled Services Providers Among 15 Charged with Medicaid Fraud The U.S. Justice Department announced criminal charges against 15 individuals in Minnesota on Thursday, accusing them of defrauding Medicaid and other state-run social services programs of over $90 million. The charges, revealed during a press conference in Minneapolis, mark a significant escalation in federal efforts to combat healthcare fraud in the state. Assistant Attorney General Colin McDonald emphasized the severity of the case, calling the fraud “shocking” and stating that the investigation is far from over. The defendants are alleged to have exploited programs designed to support vulnerable populations, including Medicaid, housing assistance, meal programs, and services for individuals with disabilities and autistic children. McDonald detailed specific allegations, including the defrauding of a publicly funded program meant to provide medical services to children with autism. Two individuals are accused of siphoning $46.6 million from the program by paying kickbacks to parents who brought their children to autism centers, diagnosing children with autism regardless of medical necessity, and billing for services that were never provided. Health Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Mehmet Oz joined McDonald at the press conference, condemning the alleged schemes. Kennedy described the fraud as “organized theft” that exploited the most vulnerable children, deceiving families and stealing taxpayer funds intended to support legitimate care. He vowed that such crimes would not be tolerated, stating, “We will not allow criminals to treat children as billing opportunities while American taxpayers foot the bill.#minnesota #robert_f_kennedy_jr #mehmet_oz #us_justice_department #colin_mcdonald
Trump administration defers $1.3 billion in Medicaid payments to California amid fraud investigation The Trump administration announced on May 13, 2026, that it would defer $1.3 billion in Medicaid payments to California as part of a broader crackdown on fraud in federal healthcare programs. Vice President JD Vance revealed the decision during a White House event, marking the latest step in the administration’s efforts to address alleged misconduct in Medicaid and Medicare. This move follows a similar deferral of over $350 million in Medicaid reimbursements to Minnesota earlier in the year, which was also part of a series of anti-fraud measures unveiled by the administration. The measures include a nationwide six-month moratorium on new enrollments for hospice and home health providers in Medicare, as well as a review of every state’s Medicaid Fraud Control Unit (MFCU). These units are responsible for investigating and prosecuting fraud among Medicaid providers. The administration also emphasized that states failing to comply with MFCU obligations could face the loss of federal funding for their Medicaid programs, which totals nearly $500 million annually. Vance and Centers for Medicare and Medicaid Services (CMS) administrator Dr. Mehmet Oz criticized several Democratic-led states, including California, Minnesota, New York, and Hawaii, for allegedly not taking fraud seriously. They argued that states must strengthen their efforts to combat fraud through MFCUs to retain federal support. Letters were sent to state attorneys general, including California’s Rob Bonta, warning that noncompliance could jeopardize Medicaid funds. One such letter stated that failure to fulfill MFCU responsibilities could place a state’s entire Medicaid program at risk.#california #minnesota #trump_administration #jd_vance #mehmet_oz
