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To: Les H who wrote (51472)2/8/2026 10:15:19 AM
From: Les H  Respond to of 51503
 
$1 billion in Medicaid funding vulnerable to fraud, according to DHS audit

Author Aaron Jones Minneapolis Times

February 7, 2026

The presence of the audit itself appeared to have a chilling effect on bad actors. As the 14 high-risk programs gained national attention in late 2025, inappropriate billing declined by nearly 30%, resulting in $165 million in “cost avoidance”.

A high-stakes audit of Minnesota’s Medicaid system released Friday reveals that more than $1 billion in taxpayer-funded healthcare payments were exposed to potential fraud, waste, and abuse over a four-year window.

The report, produced by outside consultant Optum, examined 46 months of fee-for-service claims data ending in late 2025. While the audit identified $52.3 million in “direct recoveries”—funds that can be recouped due to explicit policy violations—the most alarming figure is the $1.03 billion in “potential recoveries” tied to systemic vulnerabilities and ambiguous state rules.

$1 billion in Medicaid funding vulnerable to fraud, according to DHS audit | Minneapolis Times

It is probably higher since the observed percentage of fraud in Medicaid nationwide is 5%.