RELEASE: Rep. Robbins Responds to Alarming Report that DHS Ignored Major Warnings of Fraud in Housing Stabilization

A new KARE 11 investigation has revealed that for more than a year, the Minnesota Department of Human Services (DHS) ignored repeated warnings from Hennepin Health, a county-run Managed Care Organization, and other county officials about fraud in the Housing Stabilization Services program. The program, which ballooned to more than $100 million annually, was plagued by bribes, falsified records, and even billing for clients who had already died. Despite receiving credible reports dating back nearly two years, DHS continued making payments while vulnerable Minnesotans went without help. 

Rep. Kristin Robbins (R-Maple Grove), Chair of the House Fraud Prevention and State Agency Oversight Committee, issued the following statement: 

“This is yet another egregious example of how DHS failures enable fraudsters. I was stunned when I was shown these documents a few weeks ago. Hennepin Health repeatedly tried to warn DHS and was flat-out ignored. DHS had credible allegations of fraud, bribery, and even billing for the dead, yet they let tens of millions of taxpayer dollars keep flowing. That is unconscionable. This is a complete dereliction of duty, and it is long past time that Governor Walz holds his agency accountable for the theft of taxpayer money. I look forward to getting more information from DHS at our hearing next week, because this kind of negligence cannot be tolerated.” 

The House Fraud Prevention and State Agency Oversight Policy Committee is scheduled to meet on September 17th. Full details about the hearing will be released in advance. To read the full story from Kare 11, click here.