Rep. Kristin Robbins (R-Maple Grove), Chair of the House Fraud and State Agency Oversight Committee, released the following statement in response to the recent federal raids and investigation into alleged fraud within Minnesota’s Housing Stabilization Services program:
“The eight search warrants carried out by the FBI and the US Attorney’s office involving the Housing Stabilization Services program demonstrates yet another enormous failure by the Walz Administration to protect taxpayers and ensure that vulnerable Minnesotans get the services they need.
This follows the same pattern the Fraud Committee has been highlighting for months: Minnesota expands unregulated Medicaid services and fraudsters jump in to exploit lax oversight by DHS to steal millions from taxpayers and the poor.
Minnesota’s Housing Stabilization Services is a relatively new Medicaid expansion program created in 2020 to help senior citizens and people with disabilities, including mental illness and substance use disorder, find stable housing. As alleged in the search warrants, five different providers were fraudulently billing Medicaid for sub-standard or non-existent services. In some cases, different providers were billing for the same clients on the same days, without the clients’ knowledge that they were enrolled in the program.
This is the latest in a growing list of fraud schemes uncovered in Minnesota under the Walz Administration, which has lost hundreds of millions of dollars to fraud to date. Unfortunately, this is probably still the tip of the iceberg. Minnesotans deserve better.
Our committee has repeatedly raised concerns about the rapid expansion of benefit programs without adequate oversight. This case highlights the urgent need for stronger vetting of providers, verifying eligibility, and tighter controls on billing. I am grateful for our federal law enforcement partners for their thorough investigations and for taking swift action to stop the fraud and bring the criminals to justice.”
