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KARE 11 Investigates: Pausing All Payments to Catch Fraud on the Front End

Governor Walz halts payments to 14 Medicaid services amid fraud allegations affecting about 1,600 providers and orders a third-party audit to protect vulnerable Minnesotans.

  • On Wednesday, Oct. 29, Governor Tim Walz ordered a third-party audit of billing for 14 Medicaid services and paused payments for up to 90 days.
  • Following a wave of fraud charges and scrutiny, KARE 11 Investigates reported on questionable billing linked to alleged fraud in state programs, prompting DHS actions.
  • The Human Services Department designated 14 Medicaid services as high-risk, listing Early Intensive Developmental and Behavioral Intervention services for autism, Nonemergency Medical Transportation, and Housing Stabilization Services , which will close Friday.
  • Approximately 1,600 providers will be affected by the shutdown while Department of Human Services plans to redesign and relaunch HSS with stronger fraud prevention and oversight.
  • The state contracted Optum, a health services and technology company owned by UnitedHealth, to analyze Medicaid fee-for-service claims and flag questionable billing, with DHS verifying flags and referring suspected fraud to the DHS Office of Inspector General using funding approved in the 2025 legislative session.
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Fox 9 broke the news in Minneapolis, United States on Wednesday, October 29, 2025.
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