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Minnesota Seeks to Replace Fraud-Ridden Housing Stabilization Services
The replacement would add stronger oversight and quality checks after prosecutors charged more than a dozen people in at least $26 million in fraud cases.
- The Minnesota Department of Human Services is planning to replace Housing Stabilization Services, a Medicaid program the Walz administration shut down last year after identifying extensive fraud.
- Announcing the first wave of charges last year, former First Assistant U.S. Attorney Joe Thompson warned that Minnesota was "drowning in fraud" in Medicaid services intended to help disabled recipients live outside institutions.
- Federal prosecutors report the program attracted "tourists" seeking "easy money," with state payments peaking at more than $104 million to over 700 providers in 2024, many of whom were not actually providing services.
- Disability advocate Mao Yang supports a replacement, noting "we need navigators" to assist with accessibility, while Medicaid recipient William Heinen said he would have appreciated clearer guidance when searching for housing.
- The Department of Human Services plans to develop a legislative proposal for 2028, with the new program incorporating "enhanced measures for program integrity, oversight and quality assurance" as it is developed over 2027.
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Meet the new fraud, same as the old fraud
The triumph of hope over experience. From the Minnesota Reformer via the Bemidji (MN) Pioneer. Minnesota seeks to replace fraud-ridden Housing Stabilization Services: The state Department of Human Services plans to develop a new program and a legislative proposal for 2028. HSS was an only-in-Minnesota program under Medicaid, so completely fraud-ridden that even fraud-loving Gov. Tim Walz was forced to shut it down. As designed, the program was u…
Grand Rapids Herald-Review+4 Reposted by 4 other sources
Minnesota seeks to replace fraud-ridden Housing Stabilization Services with new program
The Minnesota Department of Human Services is planning to replace Housing Stabilization Services, a Medicaid program that was so riddled with fraud it was shut down by the Walz administration last year. The agency plans to develop a new program…
Coverage Details
Total News Sources22
Leaning Left3Leaning Right8Center8Last UpdatedBias Distribution42% Center, 42% Right
Bias Distribution
- 42% of the sources are Center, 42% of the sources lean Right
42% Right
L 16%
C 42%
R 42%
Factuality
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