Governor Walz Orders Fraud Audit, Suspends Payments for 14 Medicaid Programs in Minnesota

Minnesota Governor Tim Walz has ordered a third-party audit for 14 Medicaid-funded state programs identified as high-risk for fraud, with payments paused for up to 90 days during the review. The Department of Human Services has contracted Optum to analyze Medicaid fee-for-service claims, flagging suspicious billing patterns such as missing documentation and unusually high charges. Programs affected include services for autism, housing stabilization, and nonemergency medical transportation, among others, some of which have recently been linked to federal fraud investigations. Walz emphasized the need to restore public trust in these programs designed to help disadvantaged populations, acknowledging potential delays in provider payments but assuring compliance with federal payment rules. The audit findings will be reviewed by the agency's Office of Inspector General for possible investigations, while Republican leaders criticized the administration for delayed identification of fraud risks. This action follows widespread fraud schemes impacting Minnesota and federal programs, underscoring ongoing efforts to improve oversight and prevent criminal activity in Medicaid services.