Expert warns Minnesota's Medicaid fraud problem remains unchecked amid new licenses

Bill Glahn, a fellow at the Center of the American Experiment, warns that Minnesota has not curbed the expansion of provisional assisted-living facilities, with 364 new licenses granted in the last year. He highlights that roughly 20% of the state's 2,500 licensed facilities opened recently, raising concerns about inadequate regulatory scrutiny. Glahn references a criminal complaint filed by Attorney General Keith Ellison’s office charging Salman Ahmed Elmi with eight felony theft offenses tied to Medicaid fraud and alleged connections to a sex-trafficking operation.

He argues the scandal reflects deeper failures within state agencies tasked with vetting providers. Glahn also faulted Governor Tim Walz for not removing officials responsible for missed detections and for lacking decisive action, noting that the lieutenant governor and a U.S. senator are campaigning for higher office despite the crisis. The Minnesota Department of Human Services says it has introduced anti-fraud measures, including freezing high-risk enrollments and stopping payments to 747 providers, but Glahn says these steps fall short of what is needed.