A shadow hangs over Minnesota’s Medicaid system, a story of potentially hundreds of millions of taxpayer dollars diverted through alleged fraud. The focus: intensive autism treatment for children, specifically within the Early Intensive Developmental and Behavioral Intervention (EIDBI) program. But the questions are stark – how could such a massive financial breach occur, and why hasn’t a deeper investigation taken hold?
The EIDBI program, established in 2017, aimed to provide crucial support for children on the autism spectrum. Instead, it appears to have fueled an astonishing surge in both diagnoses and the number of providers. In just five years, the number of providers exploded by 700%, while Medicaid payouts for these services skyrocketed by a staggering 3000%, leaping from $6 million to nearly $200 million.
Federal agents recently raided two autism care centers – Smart Therapy Center and Star Autism Center – both serving the Somali community in Minnesota. Search warrants revealed “substantial evidence” of fraudulent claims for services never rendered, or for treatments not covered under the EIDBI program. The scale of the alleged deception is breathtaking.
The growth in state Medicaid payments for autism treatment is almost unbelievable. From $32 million in 2020, the figures climbed to $81 million in 2021, then $133 million in 2022, and finally surpassed $200 million in 2023. This dramatic increase occurred alongside a separate, equally troubling case – the “Feeding Our Future” scandal – where $250 million in funds were allegedly claimed for meals that were never served.
The initial alarm was raised from within Smart Therapy Center itself. A supervisor reported to the FBI that employees – often young relatives of the owners with limited education or training – were being hired for intensive autism care. These individuals, the supervisor claimed, were chosen for their affordability and willingness to avoid questioning company practices.
The allegations don’t stop there. One employee reported that many clients didn’t appear to exhibit signs of autism. Furthermore, the owners were accused of actively recruiting clients by canvassing the community and even, shockingly, offering payments to parents to enroll their children in treatment. A disturbing picture of a system prioritizing profit over genuine care emerges.
Adding to the complexity, Minnesota’s Department of Human Services (DHS) established an advisory group to oversee the EIDBI program. This group was intended to gather input from experts, parents, and individuals with autism. Yet, the focus appeared to be on accessibility rather than rigorous financial accountability, leaving a critical oversight gap.
This case isn’t isolated. Medicaid fraud occurs across the nation, but the magnitude of the alleged scheme in Minnesota is particularly alarming. The core issue is a lack of oversight, a failure to ensure that funds are being used as intended. Without proper checks and balances, the potential for abuse is immense.
The rapid expansion of the EIDBI program raises serious questions about the roles of key state officials. Commissioner Jodi Harpstead of the Department of Human Services, Commissioner Willie Jett of Education, and the Director of Medicaid & MinnesotaCare all bear responsibility for monitoring such a significant program. How did such substantial budget increases pass without thorough scrutiny?
The federal Medicaid representatives also warrant examination. Typically, these representatives require detailed monthly reporting and oversight of funds. How did Minnesota’s massive increase in spending go unnoticed? Was there a failure to demand supporting data, or a willingness to overlook red flags? The FBI’s investigation must extend to this crucial aspect.
The sheer number of departments that seemingly missed this widespread fraud suggests a deeper, systemic problem. A comprehensive investigation is needed to uncover the full extent of the alleged deception. The lack of qualification requirements for EIDBI caregivers underscores the vulnerability of the system and the ease with which it could be exploited.
This situation demands accountability and a thorough review of all behavioral health programs within Minnesota. The absence of rigorous oversight created an environment ripe for abuse, and taxpayers deserve answers. The story serves as a stark warning: without vigilant monitoring, even well-intentioned programs can be corrupted, and public trust eroded.
