Minnesota Launches Website to Counter Misinformation About Medicaid Fraud Claims

Minnesota officials have launched a new website to counter what they describe as misleading information about Medicaid fraud in the state, amid an ongoing dispute with federal authorities over program funding.

The Minnesota Department of Human Services unveiled the website on Wednesday, designed to “correct misleading information and outright false claims” about Medicaid fraud. The launch comes in response to a recent decision by the Centers for Medicare and Medicaid Services (CMS) to withhold $515 million quarterly from 14 Minnesota Medicaid programs deemed “high risk.”

The federal agency’s action, which amounts to one-quarter of federal funding for these programs, followed their rejection of Minnesota’s corrective action plan addressing fraud allegations. State officials have filed an appeal against the decision.

“While we continue to tighten oversight of Medicaid programs, we want to ensure the public has a place to go for facts about the defunding of social services programs,” said Minnesota’s temporary Human Services Commissioner Shireen Gandhi in a statement released Wednesday.

The new fact-check page is integrated into the state’s broader Medicaid program integrity website, which provides resources and information about Minnesota’s anti-fraud efforts. Initial content addresses what Gandhi characterized as exaggerated fraud figures, alleged findings circulating on social media, and clarifies details surrounding the federal government’s funding withholding decision.

“Speculation, intentional misinformation and amateur investigations will not stop fraud in our state,” Gandhi stated. “It takes hard evidence to put criminals behind bars.”

Medicaid serves as a crucial healthcare lifeline for approximately 1.2 million low-income Minnesotans, including vulnerable populations such as children, people with disabilities, and older adults. The program represents a significant portion of the state’s social safety net infrastructure.

The dispute comes at a time when new federal data actually shows Minnesota’s Medicaid program performing better than most states regarding improper payments. A recent review by CMS found Minnesota’s Medicaid error rate at just over 2.1 percent, substantially lower than the national average of 6.1 percent. This assessment examined billing statements against medical records to verify payment accuracy.

State officials have emphasized that this favorable data was collected before the Minnesota Department of Human Services implemented a series of new anti-fraud measures in late 2024, suggesting current performance may be even better.

The conflict highlights growing tensions between federal oversight agencies and state-administered Medicaid programs nationwide. Similar disputes have emerged in other states as federal authorities intensify scrutiny of program integrity measures amid rising healthcare costs.

For Minnesota, the potential loss of $515 million per quarter could significantly impact service delivery for vulnerable populations if the appeal process is unsuccessful. Healthcare policy experts note that such substantial funding reductions often result in service cuts, eligibility restrictions, or financial strain on healthcare providers serving Medicaid patients.

The state’s decision to launch a dedicated fact-checking website represents an unusual step in governmental communication strategy, reflecting the high stakes of the funding dispute and concerns about public perception of program integrity.

As the appeal process unfolds, Minnesota officials will likely continue their public information campaign while working to address CMS concerns regarding program oversight and fraud prevention protocols. The outcome will have significant implications for healthcare access among the state’s most vulnerable residents.