By: SENATOR JOHN JASINSKI
Minnesota is at the center of another massive fraud scheme, and — once again — it has hit home in Faribault. This time fraudsters used the identities of hundreds of our neighbors – many without their knowledge — to steal millions from the state’s Medicaid program.
These criminals didn’t just exploit a broken system. They exploited real people, our neighbors, all for their personal gain. This is not just a case of paperwork gone wrong or a few dishonest claims. It is organized theft, and it is happening on a scale that should make every Minnesotan angry.
It is frustrating to see Minnesota continually make headlines for fraud. Even national, mainstream, left-leaning outlets like CNN have noticed the staggering amount of fraud and lack of accountability. That outlet recently noted that when confronted with pervasive fraud, state agencies and the Walz administration “repeatedly minimized or dismissed the allegations.”
While Minnesota has prosecuted more Medicaid fraud cases than other states, that is not really something to celebrate. It means we have a serious problem that is not being addressed. And every time this happens, it very rightfully shakes the public’s trust in government’s ability to manage your tax dollars. How many more times do we need to hear about a new scheme before Governor Walz’s administration finally acts?
The case involving Faribault residents (called PITSTOP-66) is just the latest example. Hundreds of fake claims were submitted for services that never happened. They used everything from interpreter and transportation services to medical appointments. In some cases, people who were supposed to be receiving these services had no idea their identities were even being used. The fraudsters pocketed millions while hardworking taxpayers footed the bill.
We cannot just sit back and wait for fraud to happen so we can prosecute the criminals afterward. We need to be more proactive. We have to get in front of it and stop fraud before it starts. Right now, it feels like Gov. Walz’s administration is just playing defense, reacting to fraud only after it’s already occurred. That’s not good enough.
In the PITSTOP-66 case, there were clear warning signs that something was off. Faribault had ten times the number of transportation claims compared to other cities its size. Why did this not raise a red flag earlier? Why weren’t there systems in place to catch this anomaly? It is a glaring failure of oversight that allowed these criminals to exploit the system for so long.
State agencies and the Walz Administration need to step up and take ownership of this problem. We need diligent agency staff who are not just approving paperwork, but are actively verifying services and scrutinizing claims. If and when fraud is suspected, they need to act. After the Feeding Our Future scandal, where millions were also stolen, not a single state employee was disciplined, even though the Legislative Auditor’s report made it clear that early action could have stopped the fraud. That lack of accountability is unacceptable.
It is not just about catching the bad guys after the fact. It is about creating a system where fraud is almost impossible to pull off in the first place. We need to overhaul how claims are verified, implement better oversight of high-risk programs, and demand accountability from state employees and leadership.
Like many communities in Minnesota, Faribault has been taken advantage of by people looking to make a quick buck. We need stronger protections to guarantee that public programs are serving the people they were designed to help and not being abused to line the pockets of criminals.
It is time for the Walz administration to stop reacting to fraud and start preventing it. Minnesotans deserve a government that protects their hard-earned tax dollars.