Minnesota Medicaid Audit Sparks Political Dispute
Minnesota Republicans are accusing the state’s Democrats of withholding a key Medicaid assessment report. The report flagged over $52 million in improper payments. Republicans say the delay prevented legislative action before elections. Republican Speaker of the House Lisa Demuth criticized the Walz administration for not holding anyone accountable for alleged fraud.
The State of Minnesota hired Optum for an audit of Medicaid, focusing on 14 high-risk services. The report found significant improper payments but noted these do not automatically indicate fraud or abuse. In February, the Department of Human Services released a largely redacted report, spurring demands for full disclosure.
With elections 29 days away, Demuth, the GOP gubernatorial candidate, questioned the timing of the report’s release. Minnesota’s legislature is divided, with the Democratic-Farmer-Labor Party (DFL) holding a narrow majority in the Senate and an even split in the House.
Democratic Governor Tim Walz announced the audit in October 2025. This came before fraud allegations among Minnesota’s Somali community gained attention. These issues contributed to political pressure on Walz, who ended his re-election bid in January.
Republican state Sen. Jordan Rasmusson accused the Walz administration and Democrats of downplaying the fraud issue. He claimed elected Democrats were hesitant to admit the extent of the problem and take responsibility.
The Department of Human Services stated the report was redacted to protect trade secrets and security. Rasmusson proposed an amendment to release the full report, but it was initially rejected. However, a version passed later in a budget package.
Under Minnesota law, certain legislative committee members can access the unredacted report. They must request it jointly and cannot publicly release sensitive information.
Rasmusson requested the full report in June. Co-chairs Mohamud Noor and former GOP House co-chair Joe Schomacker requested it in May. Lawmakers only accessed the report last week.
Republican state Rep. Dawn Gillman expressed disappointment at the delay in addressing the report’s findings. She stated lawmakers would need to wait until January to take action.
State Sen. John Hoffman countered, arguing the full report wasn’t needed to enact protective measures. He said the report highlighted vulnerabilities which were already being addressed through new legislation. He emphasized that sharing the report could expose weaknesses before they were fixed.
Rasmusson disagreed, arguing the report indicated systematic failures in protecting against fraud. He mentioned issues with verifying program recipients’ eligibility and ensuring providers offered legitimate services.
The Minnesota Department of Human Services confirmed that lawmakers now had the report, aligning with a legislative requirement passed in the last session.