Minnesota is reviewing Medicaid spending to fight fraud, but the scope is limited
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By Eva Herscowitz
Published on March 3, 2026.
Minnesota is reviewing billions of dollars in social services spending to combat fraud, but leaves out billions more that flow through health plans like Medica, Health Partners and Hennepin Health. These companies handle benefits for about 85% of Minnesotans enrolled in Medicaid. The state has largely focused on Medicaid dollars it directly pays to social service providers. However, fraudsters have manipulated the system to misuse both state and managed care dollars. The federal government has also called on the state to enhance its oversight of managed care. As part of this effort, Minnesota is working with eight managed care organizations in 2026. It is also looking to amend contracts with these organizations to strengthen their fraud protections.
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