Expert: Minnesota fraud persists as state okays new assisted living facilities daily

Despite the amount of attention Minnesota’s fraud problem has received, it doesn’t appear to be slowing down.

Center of the American Experiment policy fellow Bill Glahn is sounding the alarm about the rampant fraud that is essentially being allowed to continue in the state.

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“We have not slowed down, there is no sense in which the fraud has been stopped in Minnesota,” he told Fox News Digital.

In a recent piece, he dug deeper into the matter and revealed that there has been a massive spike in licenses being approved in the last year.

“We have something along the order of 2,500 of these licensed across the state, but about 20% of them, around three, 400 of them have just been started in the last year,” he said. His article notes that the growth seems inconsistent with the state’s aging population.

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“It’s a growth industry. Checking the current MDE list of licensed assisted living facilities reveals a total number of 2,527 of all types, a growth of 305 over that 2024 baseline. That represents an increase in the size of the industry of nearly 14 percent over a two-and-a-half year period. While it’s true that Minnesota’s population is aging, overall population growth is hardly budging,” he wrote. “Checking the MDH look up tool shows 364 facilities holding provisional licenses, meaning that they have been open less than a year, as described above. That works out to a new facility opening every day.”

“I’m not sure if there’s a real underlying driver in the demographics or the demand for these facilities, but it’s odd that we have these assisted living facilities linked to Medicaid fraud, at the same time, the Minnesota Department of Health is approving more than one a day. More than one new facility gets approved every single day, 365 days a year. And I don’t think anybody is really giving any thought to, hey, maybe some of this is not on the up and up,” he said to Fox.

Fraud aside, there are other reasons to be concerned about the facilities.

“Glahn also pointed to a recent criminal complaint filed by Minnesota Attorney General Keith Ellison’s office against Salman Ahmed Elmi, who was charged Aug. 17 with eight felony theft offenses tied to alleged Medicaid billing fraud, as evidence that fraud is still taking place,” Fox News reported. “The criminal complaint also details alleged ties among the Medicaid-funded businesses, properties previously used to provide commercial sex services and people investigators say were part of a sex-trafficking organization.”

If that’s not a good enough reason to crack down, then who knows what it will take for Minnesota to wake up.

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Sierra Marlee

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