OAN Staff Katherine Mosack
8:23 AM – Saturday, June 6, 2026
Minnesota’s Department of Human Services has removed nearly two-thirds of the state’s highest-risk Medicaid providers after a federally-mandated review process in another step of the Trump administration’s fraud crackdown.
The department announced on Thursday that it had completed a “comprehensive top-to-bottom” five-month investigation into 5,583 providers in 13 programs deemed to be high-risk to assess if they met “heightened legal and eligibility standards required to operate.”
Of the nearly 5,600, 2,061 passed the requirements to be revalidated and were allowed to continue providing taxpayer-funded services without interruption.
However, 3,411 — 61% of the group — were disenrolled. 2,491 submitted incomplete paperwork and documentation, 916 failed verification at site visits and four failed background studies, the department explained in a press release. 59 of these were referred to the department’s inspector general for further review. The remaining 111 were dropped from the review as they no longer provided high-risk services.
Many of the companies and nonprofits provided — or claimed to provide — support for vulnerable individuals with autism, mental health and disabilities.
The disenrolled companies will cease to receive federal and state funding after their disenrollment notices. They have 60 days to appeal.
“More than 1 million Minnesotans deserve to have confidence and trust in the Medicaid providers they depend on for lifesaving and life-affirming care,” said Deputy Commissioner Shireen Gandhi in the department’s statement. “We are grateful to the providers who successfully completed the revalidation process and will continue to provide quality care.”
“The paperwork is a critical step,” Gandhi added. “This is just not checking the box. DHS uses the information to check requirements are met. And when we go on site what we see must match what was submitted to us.”
Required paperwork included:
- Basic ownership disclosures and location and contact information for the business or organization.
- Current licenses, proof of insurance and training to provide care.
- Proof that the required number of qualified service providers are in place to carry out the work.
The state worked with several groups, including counties, Tribes and managed care plans, to notify communities which providers were disenrolled. It also created a webpage for Minnesotans to determine their next steps if their provider is on the list of discontinued services.
The review, which spanned 87 counties, began in January, when Minnesota gained national scrutiny after independent journalists and influencers pointed out suspicious activity surrounding establishments that purportedly provided social services through taxpayer dollars.
Vice President JD Vance was tapped in January to collaborate with the Department of Justice (DOJ) to crack down on fraud schemes across the country.
In March, President Donald Trump created the Task Force to Eliminate Fraud via executive order.
Last month, the DOJ announced a massive fraud investigation in The North Star State that led to the department bringing charges against 15 individuals accused of defrauding vulnerable Minnesotans. In one instance, a defendant billed Medicaid under the guise of providing 24-hour care under the Integrated Community Supports (ICS). The defendant did not provide this service, and his patient was later found dead, the Justice Department alleged.
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