Clients suffering as Minnesota revalidates 5,000 Medicaid providers amid fraud crisis
Minnesota state officials are feeling pressure from the federal government, working to revalidate thousands of Medicaid providers who operate in programs that are at high-risk for fraud.
It's led to the termination of services at thousands of locations. Some of those places tell WCCO they've done nothing wrong, and now their clients are suffering.
There's a lot of stress and a lot of confusion as the state tries to sort out who is doing things by the book or cooking the books. Legitimate or not, when services get cut off, the most vulnerable suffer.
Richelle Smith thought she had found a way off the street when she moved to St. Paul last summer. Now, she and her 10-month-old daughter are homeless.
"The apartment that I thought I would be in for the next two years was a fraud," Smith said.
She had trusted a company called Ultimate Home Health to house her in St. Paul and help pay for mental health services through Medicaid.
The federal government is now charging the owner for allegedly stealing $1.4 million from the state's Integrated Community Supports, or ICS, program.
Smith says she's been left behind.
"With all the fraud going on, there's not a lot of options anymore," Smith said.
She says she's struggling to find housing as the state puts Medicaid providers under intense scrutiny, revalidating more than 5,000 locations to root out fraud.
"Fraudsters are stealing time and dedication away from my service providers," Smith said.
Mike Hill, born with a spinal defect, is an ICS recipient at a Roseville apartment building run by Accessible Spaces. Medicaid helps pay for his medical equipment, bed and even his cat, Callie. He's worried about all of it because the state is terminating funding to his building, a decision Accessible Spaces is working to appeal.
"What are people like me going to do?" Hill said.
He says his main frustration lies with the people who are stealing from this system.
"They can't be people. It's real bad. In my own words, it's ugly," Hill said.
The owner of Accessible Spaces claims DHS never visited their Roseville location before making their determination. They say while five of their locations are terminated, two are approved.
