Senators Call For Independent Inspector General After Medicaid Fraud Revelation

Senators Call For Independent Inspector General After Medicaid Fraud Revelation

St. Paul, Minn. — August 20, 2025

Minnesota lawmakers are renewing their push for stronger oversight of state programs after a recent KARE 11 investigation uncovered Medicaid billing for services provided to a deceased individual.

Senators Heather Gustafson (DFL–Vadnais Heights) and Michael Kreun (R–Blaine) are urging action on legislation that would create the state’s first independent Office of Inspector General (OIG). The bipartisan bill, which passed the Senate 60–7 earlier this year, is designed to detect fraud, waste, and abuse early—particularly among program vendors and recipients—and prevent costly problems before they spiral out of control.

Sen. Heather Gustafson (DFL–Vadnais Heights)

Sen. Michael Kreun (R–Blaine)

"This is about trust. Taxpayers deserve confidence that their money is being spent wisely," said Senator Gustafson. "The Senate came together across party lines to pass one of the strongest anti-fraud measures in state history. Now we need the House to act so Minnesotans can get the accountability they deserve."

Despite the bill’s overwhelming Senate support, it did not receive a floor vote in the House during the last legislative session. Kreun emphasized that recent events underscore the urgency of stronger oversight.

"This week's news is another reminder that our programs are vulnerable to abuse," he said. "Accountability has to be built into the system, and that's exactly what an independent Inspector General would provide."

The proposed OIG would have broad authority to audit, investigate, and review state programs, with the power to refer cases for prosecution and recommend systemic reforms. Its proactive approach aims to protect taxpayer dollars, increase transparency, and restore public confidence in government operations.

Senators Gustafson and Kreun are calling on the Minnesota House of Representatives to advance the measure in the next legislative session and send it to the Governor’s desk.

"In order to build back public trust, we need to show Minnesotans we're serious about fixing this problem," Gustafson said. "Our bill to establish an Inspector General is the change in direction that Minnesota needs."

MinneapoliMedia