Fraud Failures
By Senator Jeff Howe 

Under the Walz Administration, we’ve consistently had new cases of fraud pop up throughout government agencies. It seems like every week, something new is uncovered. It’s just proof that our dollars are being misused and no accountability has been taken. There are two big cases of fraud I want to draw attention to: Medicaid fraud, and autism center fraud. Minnesotans are tired of this mismanagement spanning ALL agencies.

The Medicaid fraud is nothing new – it has plagued our state for years. Since 2019, there have been hundreds of millions in fraud throughout DHS and HHS, much of that associated with Medicaid. There was also $100 million in fraud associated with the Child Care Assistance Program (CCAP), and even the OLA mentioned that it was a “conservative” estimate overall. In terms of the Medicaid fraud, a case has occurred every single year under Commissioner Harpstead’s tenure, save for 2020 when they had a whole host of other issues and were still trying to get to the bottom of the massive CCAP fraud.

After years of these cases, I do not find it coincidental that Commissioner Jodi Harpstead is stepping down. In fact, it’s shameful that the Walz Administration never once held her accountable for her continued glaring lack of oversight. She was literally brought in to the Department to clean up the fraud and abuse that started before her tenure. Not only did we never hear any long-term update on “Operation Swiss Watch,” which was the term she coined for clearing up the rampant fraud, but she was never held accountable for the fraud that happened under her watch. When we can pinpoint instances of fraud to a specific department or area, Minnesotans should trust that we are holding Commissioners accountable, yet Governor Walz has failed every time.

The autism center fraud is another issue. Originally two autism centers were raided by the FBI, as part of a larger investigation in connection to the Feeding Our Future case. For folks that don’t remember, Feeding Our Future was a large-scale operation that totaled over $250 million in fraud – and now we have a new branch of fraud created as a result of it. In these new autism center claims, individuals reported that many kids receiving services at these centers were not autistic, and the owners of the centers were paying parents to bring children to their centers. With more and more of these centers popping up, Medicaid funds paid to these centers expanded from $32.4 million in 2020 to $228 million in 2024. The rapid expansion of this “industry” presented a clear red flag, I’m just surprised it took so long to investigate.

It’s upsetting that our Governor has not taken any of these cases seriously until recently. And even though he’s finally acknowledging the fact that we have a clear problem, the proposal he’s put forward falls short in every way. He wants to move investigators from our Commerce Department over to the Bureau of Criminal Apprehension (BCA). This is nothing but a façade, because the Commissioners testified in committee that this is not the type of fraud they investigate! This “solution” does nothing to address the fraud we’re experiencing! All the while, Attorney General Keith Ellison’s office could have also stepped in, but he has instead spent his time going after farmers, veterans, and car manufacturers. Governor Walz and AG Ellison are spending their time concentrating their efforts in the wrong areas, and it will not address the underlying fraud issues we’ve been facing.

The bottom line is that the people perpetuating these operations and scams are using our most vulnerable to make a quick buck at the taxpayers’ expense. What makes this whole situation even worse is that we can pinpoint where our agencies failed – what Commissioners failed in their duties. Yet the Walz Administration has failed to hold a single person accountable.

Everything in this column has happened under Governor Walz and not a single commissioner or agency has been held accountable. This is unacceptable and as taxpayers, every single Minnesotan should demand better of those in power.  Putting Minnesotans first, ensuring tax dollars are used effectively and efficiently and holding government accountable must be the goal.