Medicaid program for disabled adults was 'vulnerable to fraud,' federal prosecutors say
Minnesota fraud connections uncovered
Prosecutors have filed charges against six people who they say defrauded nutrition, housing and autism services programs in Minnesota. FOX 9’s Corin Hoggard has the latest details.
(FOX 9) - On Thursday, the FBI raided a Bloomington business as part of an investigation into a Medicaid program that federal prosecutors said was "vulnerable to fraud."
FBI raid came months after stopped payments over suspected fraud
What we know:
FBI agents raided Ultimate Home Health Services on 17th Avenue South in Bloomington on Thursday.
According to federal prosecutors, between June 2024 and August 2025, the business billed Medicaid for more than $1 million in services for 13 clients.
Prosecutors said in many instances the provider billed for services it never provided.
In one case, prosecutors said, a man who received services from the provider was found dead in his apartment.
Ultimate Home Health Services claimed it provided services to the man 12 hours a day, but prosecutors said his mother cast doubt on that claim.
By the numbers:
According to federal prosecutors, Integrated Community Supports paid out $4.6 million in claims when it launched in 2021.
But the cost of the program grew rapidly, reaching nearly $180 million in claims by late 2025, nearly 40 times as much as it cost in its inaugural year.
It is unclear how much of the more than $400 million paid out since the program’s inception involved fraud.
What they're saying:
"This ICS program would allow providers to bill hundreds of dollars a day for each ICS client that they had," explained First Assistant U.S. Attorney Joseph Thompson during a news conference in Minneapolis on Thursday.
State suspended payments over ‘credible allegations of fraud’
The backstory:
The Minnesota Department of Human Services (DHS) first suspended payments to 11 service providers in September after it uncovered "credible allegations of fraud."
At the time, the agency said the allegations concerned providers billing for services that were never provided.
In November, the agency said it had suspended payments to an additional five providers over suspected fraud, impacting nearly 100 program participants.