Minnesota’s Fraud Crisis Far From Over, Expert Warns of Ongoing Schemes

A policy expert is raising alarms that Minnesota has made insufficient progress in combating a sprawling Medicaid fraud scandal that has already cost taxpayers billions of dollars. Bill Glahn, a policy fellow at the Center of the American Experiment, told Fox News Digital that fraud cases continue to emerge despite increased public scrutiny of the state’s licensing practices and oversight mechanisms.

Glahn has documented concerning trends in the state’s assisted-living facility licensing process, noting that Minnesota’s Department of Health has approved more than one new provisional license daily throughout the past year. Data from the state’s licensing database revealed 364 new facilities received provisional licenses over the past 12 months, representing approximately 20 percent of the roughly 2,500 such facilities currently operating across Minnesota.

Recent criminal cases underscore the ongoing nature of the problem. Minnesota Attorney General Keith Ellison’s office charged Salman Ahmed Elmi on August 17 with eight felony theft counts related to alleged Medicaid billing fraud. The complaint also detailed connections between Medicaid-funded operations and properties previously associated with commercial sex services and alleged sex-trafficking organizations, suggesting interconnected criminal schemes.

Glahn attributed the continued vulnerabilities to what he describes as an absence of accountability within state government. He noted that no high-ranking officials have been terminated for failing to detect or prosecute the fraudulent schemes, and the regulatory culture established under Gov. Tim Walz has not fundamentally shifted toward more rigorous verification procedures.

The Minnesota Department of Human Services said it has implemented anti-fraud measures since fall 2024, including identifying 14 high-risk service categories and freezing new provider enrollment in those areas. The department reported that since January 2025, it has halted payments to 747 Medicaid providers based on credible fraud allegations and referred 824 cases to law enforcement.