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Fraud Concerns Rise Over $380M Medicaid Billing in Minnesota

1/26/2026

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Summary

Story summary

Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, said approximately 400 Medicaid-billing businesses operate from a linen factory in St. Paul, Minnesota.
The group has billed Medicaid about $380 million, prompting fraud concerns and scrutiny of the concentration of such businesses in an industrial area.
House committee chairs have requested documents from Minnesota officials regarding alleged Medicaid fraud, and Governor Tim Walz acknowledged fraud issues.

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Story summary

Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, said approximately 400 Medicaid-billing businesses operate from a linen factory in St. Paul, Minnesota.
The group has billed Medicaid about $380 million, prompting fraud concerns and scrutiny of the concentration of such businesses in an industrial area.
House committee chairs have requested documents from Minnesota officials regarding alleged Medicaid fraud, and Governor Tim Walz acknowledged fraud issues.