Minnesota
Minnesota fraud is just the tip of a growing iceberg | Opinion
Minnesota’s scandals have showcased just how vulnerable large public systems can be to mismanagement, weak oversight and exploitation, especially since Democratic leadership failed to take action.
HHS freezes Minnesota childcare funds amid fraud claims
The federal Department of Health and Human Services froze all childcare payments to Minnesota, citing what it calls ‘blatant fraud’ at state daycares.
The great American author Mark Twain is purported to have said that it’s easier to fool people than to convince them that they have been fooled. Such has been the case with the latest developments in the bevy of fraud scandals that have enveloped my home state of Minnesota – so many that it’s hard to keep track – and now others.
Once a beacon of what a progressive utopian state could look like, full of nice people, beautiful lakes and leftist politicians like Gov. Tim Walz and Sen. Amy Klobuchar, Minnesota’s scandals have showcased just how vulnerable large public systems can be to mismanagement, weak oversight and exploitation, especially since Democratic leadership failed to take action.
Minnesota fraud looks worse than ever
A report released by the Office of the Legislative Auditor on March 17, about the Early Intensive Developmental and Behavioral Intervention Program, revealed that Minnesota’s Department of Human Services failed to fully investigate allegations that Medicaid programs were receiving kickbacks because agency officials didn’t think they had the authority. This turned out to be untrue.
Members of the Legislative Audit Commission wrote, “We disagree with DHS’s assertion that it did not have the authority to investigate allegations of kickbacks alone. Based on our analysis, DHS has had the authority to investigate allegations of kickbacks in MA (Medical Assistance) since the late 1990s.”
That audit report is the latest in the ongoing cases of fraud. So far, at least two Minnesota autism centers are under federal investigation on fake billing and kickbacks to parents who enrolled their kids in the programs, whether or not they even had an autism diagnosis.
On March 2, Abdinajib Yussuf pleaded guilty to one count of wire fraud related to Medicaid billing for the Star Autism Center, which Yussuf opened in 2020. He submitted millions of dollars worth of claims for Medicaid reimbursement and collected more than $6 million in reimbursement funds, which he sometimes shared with parents of kids “enrolled.”
In December, Asha Hassan pleaded guilty to a similar scheme via Smart Therapy. Hassan agreed to pay nearly $16 million in restitution and faces potential time in prison.
There may be fraud happening in other states
Minnesota might not be the only state with rampant fraud related to government programs. On March 16, President Donald Trump signed an executive order launching a national task force led by Vice President JD Vance to uncover whether what happened in Minnesota is happening in other states.
A White House fact sheet said California, Colorado, Illinois, Maine and New York and are states with “insufficient” fraud oversight. On March 17, Trump also added Florida to the list of states to probe.
In June, the Department of Justice charged 15 people in a $10.6 billion health care fraud and money laundering scheme in New York, the DOJ announced charges in Medicare and Medicaid fraud schemes in Arizona totaling more than $1.1 billion, and it charged five defendants in California with over $14.6 billion in alleged false billings in a health care fraud and illegal drug diversion scheme.
In Texas, where I live now, in February federal authorities charged a Russian national with more than $1.8 billion in alleged schemes. Gov. Greg Abbott, a Republican, vowed to “strengthen” the state’s efforts to combat abuse.
Walz and others should be held accountable
Due to the scale and perpetual nature of the fraud scandal in Minnesota, Democratic leaders must be held accountable for their lack of oversight and failure to act. I’d say the same for Republican leadership.
On March 4, the U.S. House Committee on Oversight and Government Reform released an interim staff report showcasing just how poor leadership fueled Minnesota’s “fraud explosion.”
The report is based on interviews with former Minnesota state employees and documents showing that Gov. Walz and Attorney General Keith Ellison knew about “fraud concerns” as early as 2019, but that their failures to act allowed an “estimated $300 million in federal child nutrition funds and potentially $9 billion in Medicaid-related funds to be lost or placed at serious risk.”
I’m glad Walz bowed out of his reelection bid for governor, but I still can’t believe the Democratic Party tapped him as its vice presidential nominee in the 2024 election. He can’t govern Minnesota, much less help lead a nation.
In any case, to the horror of Minnesota taxpayers, these fraud scandals have already followed Walz much longer than his campaign for vice president ever has: Their loss is our gain.
Nicole Russell is an opinion columnist with USA TODAY. She lives in Texas with her four kids. Sign up for her newsletter, The Right Track, and get it delivered to your inbox.
Minnesota
The midterms loom as another chance for Minnesota to set an example for the nation
Minnesota
Small Minnesota farms feeling the impact of high beef prices
Beef prices have climbed to record highs this year, and consumers are noticing.
That’s due in part to the U.S. cattle herd being the smallest it’s been in 75 years due to drought and high feed costs. John Lauritsen shows us how that’s impacting smaller beef producers in Minnesota.
“In 2008 we started with three cows. And we didn’t sell our first beef to consumers until 2011,” said Josh Krenz of Windland Flats Farm near Princeton.
But for the past 15 years, Krenz said his Highland Cattle have been in high demand. The long-haired cows are a niche product, and over the past 5 years consumers have been contacting Windland Flats Farm for their steaks and ground beef.
“It’s super lean but really tender and has a lot of marbling to it still,” said Krenz.
The rising popularity of Highland meat has allowed Krenz to expand. The natives of Scotland are hearty animals and good grazers who need shade but not barns, so they’re cost-effective to raise. But lately, Krenz has wondered what the future holds for his herd, as consumers adjust.
“They are not buying in bulk packages that we used to sell. They are buying smaller just trying to go from paycheck to paycheck is what it feels like.”
Instead of buying 35-pound packages for about $450 like they have in the past, lately their clients have been looking to buy just a fraction of that.
“We just see people wanting to go down to 10 pounds or 15 pounds or maybe they aren’t coming back at all,” said Krenz.
And it’s forced Windland Flats and other farms like them to make a number of adjustments when it comes to promoting their product and limiting their overhead costs.”
“That’s what we are doing the most is watching our costs. Some of that is using technology to lower labor costs. Optimizing the land because we aren’t going to be able to afford to buy more land in 5 years if we aren’t going to have that income flow coming in,” said Krenz.
There’s still hope that things will turn around. In the meantime, it’s business as usual for the Highlands.
“Just as an economy as a whole, everybody is watching their wallet really hard right now,” said Krenz.
In Minnesota, Wisconsin and Iowa, there are about 250 members of the American Highland Cattle Association.
Minnesota
Wildcat Sanctuary: Rio the Ocelot Turns 27
A beloved ocelot named Rio is celebrating an incredible milestone at the Wildcat Sanctuary in Sandstone, Minnesota — her 27th birthday! This stunning medium-sized wildcat is known for her gorgeous spotted coat and distinctive ring-patterned tail. Tammy Thies, founder and executive director of the Wildcat Sanctuary, joined Minnesota Live to share more about Rio’s remarkable life. Learn more here.
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