Medicaid fraud over $1M now carries mandatory prison time under new guidelines

(FOX 9) - Minnesota is enacting new Medicaid fraud sentencing guidelines that will send offenders found guilty of stealing more than $1 million to prison.

Medicaid fraud penalties in Minnesota

What we know:

The Minnesota Sentencing Guidelines Commission has set Medicaid fraud of more than $1 million at Severity Level 8, which means a presumptive prison sentence regardless of the offender's criminal history. Other crimes at this level include criminal vehicular homicide and first-degree aggravated robbery.

The commission had originally considered setting the penalty for theft of over $1 million at Severity Level 7, which would have meant probation in many cases. Severity Level 7 covers crimes like felony DWI and financial exploitation of a vulnerable adult, a press release notes.

Dig deeper:

The 2026 MAP Act, passed in May with bipartisan support, created new penalty tiers for medical assistance fraud over $100,000 and over $1 million. Previously, anyone who stole more than $35,000 faced the same penalties as someone who stole millions.

The Minnesota Legislature sets the maximum penalty for criminal offenses in Minnesota, but the Sentencing Guidelines Commission determines the severity level, which determines a presumptive sentence along with a person's criminal history.

The new law took effect on August 1, 2026.

What they're saying:

"I am pleased that the state of Minnesota is now treating the theft of money from Medicaid with the severity it deserves. Medicaid fraud robs Minnesota taxpayers, and it steals money meant to provide healthcare to our low-income neighbors," Minnesota Attorney General Keith Ellison said in a statement.