Minnesota’s welfare fraud disaster exposes a national system designed to fail
‘The Ruthless Podcast’ co-host Josh Holmes joins ‘America’s Newsroom’ to weigh in on unrest in Minneapolis as fallout from the deadly ICE shooting continues.
The welfare fraud in Minnesota seems to be a never-ending story. We’re learning that scammers bilked multiple programs intended to help low-income families, including Medicaid, food aid, housing assistance and childcare programs. Based on what’s been uncovered so far, the people who perpetrated those schemes may have stolen upwards of $9 billion.
Yet, while Minnesota’s welfare fraud is particularly brazen and systemic, it is not unique to that state. That is because the basic design of most U.S. welfare programs makes them highly susceptible to fraud.
For example, for years, Medicaid has been on the U.S. Government Accountability Office (GAO) list of federal programs at "high-risk" for fraud, waste and abuse. GAO finds the program has insufficient federal oversight. In 2024, it estimates, there were more than $31 billion in erroneous Medicaid payments.
That is particularly concerning because Medicaid is the largest means-tested government welfare program, costing federal and state taxpayers around $900 billion annually. Unsurprisingly, Medicaid was also the source of most of the money stolen in Minnesota.
MINNESOTA HOUSE SPEAKER WARNS AMERICANS WILL BE 'SHOCKED' BY SCOPE OF FRAUD........© Fox News
