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Minnesota's Fraud Crisis "Can Be Fixed" Despite Half-Century of Issues, Walz-Appointed Investigator Says

The roadmap highlights decades of vulnerabilities and urges nine pillars of reform to protect taxpayer funds and restore trust, with potential $1 billion savings in four years.

  • On Monday, Tim O'Malley, Director of Program Integrity, released a 56-page Roadmap to Program Integrity and Fraud Prevention at a St. Paul news conference, saying he has independence to follow the facts.
  • Reviewing decades of audits, the roadmap shows vulnerabilities dating back to the 1970s and blames Minnesota state agencies' failures on inadequate accountability and a culture favoring compassion over compliance.
  • The plan outlines nine reform pillars with recommendations for proactive prevention, including stronger provider and enrollee screening, technology modernization, an independent oversight monitor, and an Executive Branch Compliance Committee.
  • Earlier this month, a Walz-ordered third-party audit found policy changes could safeguard $1 billion over four years, and the recommendations will be considered by the Minnesota Legislature.
  • But officials pushed back, noting former U.S. Attorney Joe Thompson's loss estimates ranged from hundreds of millions to at least $9 billion, creating political fallout.
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Minnesota fraud fight needs long-term overhaul, failures date back to the 1970s, integrity director says

ST. PAUL — Newly appointed State Program Integrity Director Tim O’Malley gave an update on a “roadmap” to address fraud Minnesota state programs in the long term on Monday, Feb. 23. The roadmap includes recommendations to state agencies, the executive branch and the Legislature for how to combat fraud in the long term and broadly recommends nine steps: Leadership, accountability and culture  Program processes and controls  Administrative, inves…

·Fargo, United States
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KARE broke the news in Minneapolis, United States on Monday, February 23, 2026.
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