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Fraud Audit Uncovers Medicaid Mismanagement in Minnesota

1/8/2026

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Summary

Story summary

CMS Administrator Mehmet Oz announced an audit of 14 Minnesota Medicaid programs for fraud allegations, with payments deferred as investigations proceed.
An audit highlighted significant compliance failures in Minnesota's Behavioral Health Administration, including unsupported costs and improper payments, and Minnesota Department of Human Services Commissioner Shireen Gandhi acknowledged the findings.
Governor Tim Walz criticized administration of U.S. President Donald Trump for exacerbating the situation and its impact on Minnesota families.

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Story summary

CMS Administrator Mehmet Oz announced an audit of 14 Minnesota Medicaid programs for fraud allegations, with payments deferred as investigations proceed.
An audit highlighted significant compliance failures in Minnesota's Behavioral Health Administration, including unsupported costs and improper payments, and Minnesota Department of Human Services Commissioner Shireen Gandhi acknowledged the findings.
Governor Tim Walz criticized administration of U.S. President Donald Trump for exacerbating the situation and its impact on Minnesota families.