St. Paul, Minnesota — A state effort to crack down on alleged Medicaid fraud is leaving some disabled residents without stable housing, according to reporting from the Minnesota Reformer.
Brently Davis, 55, says he is facing eviction after Minnesota’s Department of Human Services (DHS) began withholding payments from his provider, American Home Health Care, citing “credible allegations of fraud.” Davis had been enrolled in Integrated Community Supports (ICS), a state-run, Medicaid-funded program designed to help disabled residents live independently rather than in institutional settings.
Davis alleges his provider billed Medicaid $419 per day for services that were rarely delivered. When DHS suspended payments last fall, the company ended both his services and its lease agreement for his St. Paul apartment, leaving Davis responsible for full rent. He now owes thousands in back payments and utilities.
State officials say at least 255 ICS recipients have been affected by payment suspensions. DHS told lawmakers it works with counties during a “safe transition period,” though advocates dispute how smoothly those transitions occur. Jonah Giese of the Minnesota Disability Law Center testified that many affected clients have ended up in shelters or emergency rooms.
The crackdown follows broader scrutiny of fraud in Minnesota’s social services system, including federal investigations into alleged rent kickbacks. So far, no providers in the ICS program have been criminally charged.
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