800 inactive Medicaid providers dropped as Minnesota aims to 'tightens oversight'

ST. PAUL, Minn. (FOX 9) - Minnesota state officials say they are combating widespread fraud by dropping about 800 inactive Medicaid providers.

This move comes after widespread fraud was uncovered in the state's Medicaid program.

This prompted Governor Tim Walz to order the Department of Human Services (DHS) agencies to "immediately disenroll all Minnesota Health Care Program enrolled providers who have not billed Medicaid in the last 12 months," according to Executive Order 25-10.

READ MORE: Minnesota fraud allegations: Department of Human Services halt payments to another program

Minnesota DHS drops Medicaid providers 

What they're saying:

As DHS officials aim to "tighten oversight," about 800 inactive Medicaid providers were dropped from the state's Medicaid program on Oct. 15. 

The state adds that impacted providers were certified before April 1, 2024 and have not been billed since that date. 

These eliminations are separate from the 621 inactive housing stabilization services that are set to end on Oct. 31. 

Temporary Human Services Commissioner Shireen Gandhi released the following statement:

"We must reduce risk and increase efficiencies wherever we can. Taking this first step to streamline the pool of inactive providers will strengthen the integrity of Minnesota’s Medicaid programs and services."

Additional rounds of eliminations will continue, DHS says.

READ MORE: 'We’re going to find more fraud' — Legislative auditor says state must do more to stop fraud

Widespread fraud in Minnesota state programs 

The backstory:

The move is in direct response to fraudulent practices uncovered within state social programs. 

A woman was charged with wire fraud in a case related to the state's autism program. Investigators made the discovery while digging into the massive Feeding Our Future fraud case. 

An Edina man also appeared in federal court after allegedly using his dissolved businesses to claim about $975,000 in COVID-19 relief. 

There are also eight people, so far, facing federal charges for their alleged roles in a massive housing stabilization fraud scheme.

In addition, there's the massive Feeding Our Future scandal that uncovered $250 million in fraud after providers said they were feeding meals to children when they actually were not.

When asked what can be done, Minnesota Legislative Auditor Judy Randall said, "If we just put in place the internal controls that are already required – that alone is the single biggest thing we could do to help – to help stop the fraud that’s been occurring."

"You cannot audit your way out of fraud," she added.