Overview
- House Energy and Commerce launched a formal investigation into alleged systemic fraud in Minnesota’s social-services programs, sending letters to Gov. Tim Walz and DHS temporary commissioner Shireen Gandhi demanding audits, provider records, fraud referrals and communications dating back years by the end of the month.
- The committee cited CMS findings that Minnesota violated federal oversight regulations and warned CMS can withhold Medicaid funding until the state complies and adopts a corrective action plan.
- Committee staff held briefings with CMS and the Justice Department as federal agencies continue parallel criminal and administrative probes alongside previously imposed funding freezes and stricter verification checks.
- Lawmakers described schemes involving overbilling, false records, identity theft and phantom claims across Medicaid-related services, and alleged that whistleblowers were ignored or faced retaliation by state officials.
- Republicans said Minnesota is the first target and urged similar scrutiny of states including New York, California, Illinois and Wisconsin, as viral videos by YouTuber Nick Shirley intensified attention and he is scheduled to testify Wednesday.