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Walz, Minnesota Officials Question U.S. Attorney’s Office Claim that Fraud Could Reach $9 Billion

Federal prosecutors allege up to $9 billion in Medicaid fraud since 2018, while state officials report only tens of millions confirmed and seek concrete proof.

  • On Thursday, the U.S. Attorney's Office said Minnesota Medicaid fraud could be as much as $9 billion, but DFL Gov. Tim Walz and Minnesota Department of Human Services officials said they have not seen evidence supporting billions in losses.
  • First Assistant U.S. Attorney Joe Thompson said 14 'high-risk' programs billed $18 billion since 2018, with alleged schemes involving shell companies and 'fraud tourism'.
  • DHS officials say they have identified tens of millions in fraud so far, and this summer DFL Gov. Tim Walz agreed a prior $1 billion estimate for total losses.
  • On Thursday, federal prosecutors announced criminal charges including two men from Philadelphia who started companies in Minnesota, while the Minnesota Department of Human Services refers suspected cases to law enforcement and seeks collaboration with the U.S. Attorney's Office.
  • Inspector General James Clark said he wants evidence of billions in fraud so DHS can stop improper payments, and officials warned confirmed large-scale fraud could 'swamp' Minnesota's Medicaid system.
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Valley News Live broke the news in on Saturday, December 20, 2025.
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