Minnesota fraud spotlighted in D.C.: Immigrants blamed, data disputed

ST. PAUL, Minn. (FOX 9) - Fraud in Minnesota was a hot topic in Washington, D.C.  on Tuesday as Republican Senators convened for two hearings to discuss the issue.

Fraud hearings highlight differing views

What we know:

Sen. John Cornyn from Texas pointed to undocumented immigrants as a major factor in Medicaid fraud, citing an $8 billion annual loss. His proposed Stop Somali Cash Fraud bill aims to scrutinize large cash withdrawals to determine if government funds are involved, a concern first highlighted by FOX 9 in 2018.

Research from the CATO Institute, however, presents a different perspective. 

It indicates that immigrants have reduced deficits by $11.5 trillion over the past 30 years, with $140 billion of that in Minnesota. The study also suggests immigrants commit less fraud per person than U.S. citizens.

State Senator Mark Koran, (R-North Branch), criticized Minnesota Democrats for the prolonged existence of fraud schemes like Feeding Our Future. He emphasized that justice should not target specific communities, regardless of their origin.

Federal fraud losses and system issues

Why you should care:

The federal government reportedly loses up to $521 billion annually to fraud, with outdated systems partly to blame. Dylan Hedler-Gaudette from the Project on Government Oversight highlighted the government's reliance on outdated technology, despite advancements like 5G and AI.'

In Minnesota, a year-long audit by Optum is underway, with early recommendations suggesting the use of AI to identify potential fraud as a promising step forward.

What we don't know:

• How the proposed bill will impact fraud prevention if passed.
• The full results of Minnesota's audit by Optum.