Judy Gilford
on December 19, 2025
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The US attorney just revealed as much as $9 BILLION in Medicaid fraud out of Minnesota, as Somalis and fraudsters RAVAGE taxpayers' pockets.
Assistant U.S. Attorney Joe Thompson disclosed that the Centers for Medicare and Medicaid Services (CMS) pulled claims data for 14 Minnesota Medicaid programs flagged for serious integrity issues. Since 2018, those programs alone billed $18 billion. In 2024, they accounted for more than $3.5 billion in claims.
And according to federal investigators, half or more of that money may be fraudulent — meaning as much as $9 billion in taxpayer funds could have been stolen or misused.
That’s not a rounding error. That’s not isolated abuse. That’s systemic failure.
Thompson described it as an iceberg — the visible fraud cases the public has already seen are only the tip. Beneath the surface sits a vast, coordinated exploitation of Medicaid waivered services, where providers allegedly billed for services never rendered, inflated claims, or operated programs that existed largely on paper.
Federal cases already show the pattern:
Millions siphoned from autism services.
Housing programs billed while clients received little or nothing.
Defendants spending Medicaid money on luxury travel, cryptocurrency, and personal enrichment.
But prosecutors were clear: they still don’t know the full number. Determining how much of the $18 billion was fraud is, in Thompson’s words, “the $18-billion question.”
The damage goes beyond money.
Minnesota has long prided itself on competent governance, civic trust, and a social safety net that works. This scandal cuts directly at that identity. It forces an uncomfortable question: How did this go on for so long — and who failed to stop it?
Investigations are expanding. More indictments are expected. Lawmakers are now under pressure not just to punish criminals, but to shut down the pipelines that made this possible.
The warning is no longer hypothetical.
The iceberg is real.
And Minnesota just hit it head-on.
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