Minnesota government remains under scrutiny over high-profile fraud cases, mainly involving people posing as service providers who get reimbursements through phony billing and a company assisting government agencies describes it as a growing threat.
The Minnesota Department of Human Services plans to redesign a housing stabilization program after shutting it down earlier this month. The agency said it had no choice after suspending payments to dozens of providers based upon credible allegations of fraud.
Aja Brown, strategic impact partner for FORWARD Platform, a company working with governments and nonprofits to deliver benefits, said it is not surprising to hear, noting many state and local governments rely on antiquated monitoring systems.
"With the expansion and sophistication of technology, it's much easier to create fraudulent documents," Brown explained.
Brown noted her team has noticed a 30% uptick in this activity over the past couple of years as it works with agencies around the U.S. to administer aid. She recommended safeguards including "multipoint checks" with more efficiencies. Experts pointed out it can take a long time to build criminal cases in these situations. This year, Minnesota approved new prevention measures but lawmakers acknowledged the need for more.
State leaders also announced this year they were exploring a pilot system involving artificial intelligence, a move Brown argued is needed. She stressed departments have to fight back with improved technology which becoming less expensive to implement.
Brown added fraud can be frustrating for taxpayers to hear but emphasized there should be a careful approach so program recipients are not burdened with added hoops to jump through.
"There's an increase in the number of American families that need vital aid," Brown underscored. "It's essential that we really optimize the way that we're able to deliver these funds to recipients, and that we also protect funds from being just redirected into the wrong hands."
The dynamic involving tougher eligibility is playing out more so at the federal level. The One Big Beautiful Bill Act pushed though Congress by Republicans includes controversial work requirements for Medicaid. Republicans contended they will help eliminate fraud and waste but opponents said they target the wrong people and lead to administrative headaches.
