The Tamesis
The Minnesota Department of Human Services recently suspended payments to 11 providers who serve people with disabilities due to “credible allegations of fraud,” according to a letter written by interim Commissioner Shireen Gandhi and obtained by WCCO.
Payments to 11 Comprehensive Community Support Program providers were stopped between Sept. 4 and Sept. 23, affecting other providers, according to a letter to state lawmakers.
“The withholding of payments to these 11 ICS providers is applicable to all ancillary services, resulting in suspension of payments to 17 more providers,” Gandhi said in the letter.
ICS is a Medicaid service that provides training and assistance to people with disabilities who live in “provider-controlled ICS environment units,” according to the state’s Department of Homeland Security website. Training may include community engagement, health, safety and wellness, home management or adaptive skills.
“It bridges the gap between a person living in their own home and a more restrictive environment like a group home or assisted living,” Gandhi said.
Gandhi said the fraud allegations “primarily involve” ICS providers billing DHS for services that were not provided.
DHS staff are said to be contacting county immunity case managers to discuss how customers may be affected. Waiver case managers are responsible for working with clients to plan services and help them select alternative services and providers, the letter said.
In a written statement to WCCO, the U.S. Department of Homeland Security said it was unable to release payment information withheld “to protect the integrity of the investigation into the provider.”
“We are taking more aggressive action to block payments, including relying on tips and data mining to prove credible allegations of fraud,” the statement said. “Withholding payments is an interim action taken while an investigation is pending. All providers who have recently been impacted by withholding payments will have an opportunity to challenge these actions through the reconsideration process.”
No charges have been announced.
According to Gandhi, DHS recently shared information with all home and community service providers to inform them of the anti-kickback law that went into effect on August 1. The law makes it illegal for providers in Minnesota to offer people money to sign up for services and prohibits providers from recommending individuals to businesses that offer financial reward.
The suspension of payments comes amid a federal investigation Minnesota Housing Stabilization Services Program’s ‘Massive Fraud Scheme’according to court documents. The investigation involves the Minnesota Medical Assistance benefit, which is designed to help people with disabilities find and maintain housing. Earlier this month, the U.S. Attorney for Minnesota Charges announced against eight people in connection with investigation.
A spokesman for the Department of Homeland Security confirmed that Eric Grumdahl, the official who oversees the housing services program No longer working for a state agency As of September 16, the reason for his departure was unclear. In a statement to WCCO, the department cited state law stating that reasons for employee separation are not public data.
A 28-year-old Minneapolis woman was charged Wednesday with $14 million autism fraud scheme and in Feed our future fraud scheme.
Gandhi said DHS has taken “significant executive actions” since the legislative session and that the agency “now sees businesses working together to game the system, rather than a single bad actor or rogue employee.”
