Report Shows DHS Inaction to Combat Fraud

March 20, 2026

OLA Report Finds DHS's Lack of Action

Friends and neighbors,

For several years, I’ve seen many issues in audits of the Department of Human Services (DHS). I have asked many DHS officials about their lack of oversight, poor record of following procedures, and the increasing levels of fraud. Yet they kept turning a blind eye to the fraud epidemic that went unchecked under their watch. Throughout this time, DHS officials have attempted to shift blame for the theft of billions of dollars by claiming that they did not have legal authority to cease payments to Medicaid providers, even if they suspected these providers of engaging in fraud. DHS claimed that they were hamstrung in their efforts because they did not get the support needed from Attorney General Ellison. Though AG Ellison's lack of interest in combating fraud is certainly partially to blame, this week, the Office of the Legislative Auditor (OLA) released a report that categorically debunked this DHS narrative.

Not only did DHS have the right and responsibility to investigate fraud, but they also allowed fraud within Minnesota's Early Intensive Developmental and Behavioral Intervention (EIDBI) Medicaid programs to balloon into the range of hundreds of millions of stolen taxpayer dollars. Reimbursement claims from these EIDBI programs, designed to provide learning assistance to children with autism, spiked from $1.7 million in 2017 to nearly $400 million in 2023. The report detailed how these so-called "providers" would pay families to fraudulently enroll their non-autistic children in the program, so that the providers could collect the Medicaid benefits.

We tried fixing things with bills from the Legislative Audit Commission (LAC), but the governor and Democratic House majority prevented real reform. Were it not for Republican efforts that created the Fraud Committee and the hearings focused on fraud—which led to viral news coverage and ultimately federal investigations, charges, and convictions—Minnesota's fraud problems would have continued unabated.

I will continue to advocate for the Office of the Inspector General bill, my LAC reform bill, and the Fraud Isn't Free Act. The lack of will shown by DHS and AG Ellison to combat fraud in our state is proof that Minnesotans need an independent prosecutorial authority that they can trust to safeguard their taxpayer dollars in a nonpolitical manner.

Bills Passed off House Floor

In a positive development, several bipartisan bills passed the House this week:

• HF3379: A 134–0 unanimous vote to repeal Minnesota's Housing Stabilization Services Medicaid benefits. Federal investigators have been looking into this program and found it to be "riddled with fraud." Growing from $2.5 million in costs in 2020 to over $100 million by 2024, it is yet another example of a program that needed to be eliminated. I was pleased to see my DFL colleagues agree.
• HF2169: Makes an unintentional murder subject to a higher penalty if there is a protective order intended to prevent the victim from being harmed or harassed by the perpetrator. Expands the jurisdiction to protective orders from Canada, D.C., tribal lands, and other U.S. territories.
• HF3615: This bill extends the expired laboratory testing requirements that allow for the testing of lower-potency hemp edibles and hemp-derived consumer products that do not contain intoxicating cannabinoids at any accredited laboratory. The intent is to prevent Minnesota's non-intoxicating hemp industry from regulation targeted at the intoxicating cannabis industry.

Election Integrity Bills

Another bill that I have been working on this Session is HF3723. With the automatic sending out of absentee ballots, it requires voter verification prior to mail delivery of an absentee ballot. 

Americans have grown increasingly skeptical about the integrity of our voting system. With no voter ID, mail-in ballots, and elections won by a narrow margin of victory, it is important for the longevity of our constitutional republic that citizens feel they have not been cheated.

This and other common-sense bills are a step in the right direction for reinstating election integrity, and I am proud to be part of that effort.

Thank You For Visiting Me In St. Paul

I would like to thank the constituent advocates that came up to visit me at the State Capitol this week. 

Visitors included:

• The People's Energy Cooperative – to discuss energy resources in Oronoco
• Olmsted SWCD staff – to go over soil and water infrastructure projects
• Education Minnesota Health Care Day of Action – to problem-solve educator healthcare affordability
• CPA Day on the Hill – to speak regarding tax law and regulations
• MNAAP Pediatricians Day at the Capitol – to work on healthcare outcomes for children and adolescents in Minnesota

If you have any questions or priorities that you would like to share with me, I encourage you to please reach out via email or phone. Even better, if you have interest in visiting the State Capitol, please coordinate with my Legislative Assistant, as these one-on-one conversations are vital for me to serve as your voice in St. Paul.

Together, we can help to shape legislation to improve Minnesota. 

Please Stay in Touch 

Please continue to stay in touch to share your thoughts or concerns. My phone number is 651-296-9236 or you can email me at rep.duane.quam@house.mn.

Have a great weekend!

Duane

/RepDuaneQuam

2nd Floor Centennial Office Building
658 Cedar Street
Saint Paul, MN 55155
ph: 651.296.9236