Fraud in Minnesota's Medicaid programs may exceed $9 billion, with recent federal and state investigations revealing widespread, industrial-scale abuse, including fraudulent claims by providers and the shutdown of programs like Housing Stabilization Services amid allegations of massive financial misconduct.
Federal prosecutors in Minnesota have announced new charges in a massive Medicaid fraud scheme involving billions of dollars, with defendants accused of billing for services not provided, using funds for personal luxury, and creating fake companies to claim millions in fraudulent Medicaid claims, highlighting the scale and impact of healthcare fraud in the state.
Eight individuals in Minnesota have been federally charged with wire fraud for orchestrating a large-scale scheme to defraud the state's Housing Stabilization Services Program, misappropriating millions of dollars intended for housing assistance to vulnerable populations, through inflated and fake claims, with some defendants personally profiting and funding lifestyles.
Eight individuals and four companies in Minnesota face federal fraud charges for allegedly stealing over $8.4 million through Medicaid billing related to Housing Stabilization Services, which was intended to connect vulnerable adults with housing but was exploited for fraudulent billing, prompting investigations and calls for systemic reforms.
Three individuals, including an online biller and a behavioral health center employee, have been indicted on multiple felony charges for allegedly defrauding Arizona's Medicaid system and the American Indian Health Program out of over $115 million. The defendants face charges of conspiracy, illegal conducting an enterprise, and theft. The investigation was conducted by the Arizona Attorney General's Office, the U.S. Department of Health & Human Services - Office of Inspector General, and the AHCCCS Office of Inspector General.
Dr. Brian Hyatt, a prominent psychiatrist in Arkansas and chairman of the board that disciplines physicians, is under investigation for allegations of Medicaid fraud and false imprisonment. At least 25 former patients have sued Hyatt, claiming they were held against their will in his unit for days or weeks. Arkansas Attorney General Tim Griffin's office has accused Hyatt of running an insurance scam by billing Medicaid for patients he rarely saw. Hyatt's facility received massive Medicaid payouts, with claims significantly higher than other psychiatrists in the state. Hyatt has not been charged with a crime, but state and federal authorities are investigating the allegations.
Navajo law enforcement teams have made contact with over 270 Native Americans, mostly Navajo, who are living on the streets in the Phoenix area after the state cracked down on Medicaid fraud and suspended unlicensed sober living homes. Many tribal members accepted offers to stay in temporary housing or return home to their reservations. The Navajo Nation launched Operation Rainbow Bridge to help those affected by the closures of fraudulent sober living homes. Arizona officials believe hundreds of fake sober living homes are currently operating in the Phoenix area and other parts of the state.