IT'S OFFICIAL: At least $9 BILLION in Medicaid fraud was just found in Minnesota.

 



The X post you shared (from December 18, 2025) by @EricLDaugh

 claims that federal authorities have confirmed at least $9 billion in Medicaid fraud in Minnesota, calling it "mind-boggling" and demanding Governor Tim Walz's resignation. It includes a Fox News video segment discussing the issue.Key Details from the Post and VideoThe post references a press conference by federal prosecutors.

It highlights alleged massive fraud in state-run Medicaid programs.

The attached video likely features reporting on new charges and statements from Assistant U.S. Attorney Joe Thompson.


Current Status of the Investigation (as of December 20, 2025)On December 18, 2025, federal prosecutors in Minnesota announced an expansion of their ongoing investigation into fraud across multiple social services programs, primarily Medicaid-funded ones. Here's a balanced summary based on reports from various sources (including AP/NYT, Minnesota Reformer, MPR News, Star Tribune, CBS, and Fox News):Scale of Suspected Fraud: Assistant U.S. Attorney Joe Thompson described it as "staggering, industrial-scale fraud." He stated that 14 "high-risk" Medicaid programs (including housing stabilization services, autism treatment, and integrated community supports) have cost taxpayers about $18 billion since 2018. Prosecutors suspect that half or more of this amount—potentially $9 billion or higher—may be fraudulent. This is an estimate based on patterns like explosive billing growth and lack of services provided; it's not yet proven in court for the full amount.

New Developments: Six additional people were charged (bringing the total charged in related cases to over 90).

Charges involve schemes like billing for non-existent housing or autism services, with funds allegedly used for luxury goods, international travel, and real estate (e.g., in Kenya).

Examples include "fraud tourism" (out-of-state actors setting up fake providers) and companies billing hundreds of dollars per day per client without delivering care.

A search warrant was executed on one provider suspected of over $1 million in false claims.

Proven Fraud So Far: Around $350–$400 million in confirmed fraudulent claims across investigated programs, with more cases ongoing. This builds on earlier scandals like the Feeding Our Future child nutrition fraud ($250+ million stolen during COVID).

Community Involvement: Many charged individuals are from Minnesota's Somali diaspora, though community leaders emphasize that fraudsters exploited vulnerable members and that the vast majority of the community is law-abiding. Prosecutors note the issue isn't limited to one group.

State Response: Governor Tim Walz has praised the federal actions, ordered independent audits, paused payments in high-risk programs, and appointed a fraud prevention director. State officials (e.g., DHS Inspector General) have questioned the lack of shared evidence for the full $9B+ estimate and stress cooperation.

Political Context: The scandal has become highly partisan. Republicans (including congressional investigations) criticize Walz's administration for oversight failures and delayed action. Walz and Democrats point to strengthened safeguards and note that fraud predates and spans administrations. President Trump has highlighted it in immigration rhetoric.


This is an active, evolving investigation—charges are allegations until proven, and the full $9B+ figure is a prosecutor's preliminary suspicion, not a finalized amount. Legitimate providers and vulnerable recipients may be impacted by payment holds and audits.If you'd like more details on specific sources, the video transcript, or related posts, let me know!

 

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