Minnesota Republicans criticize Democrats for allegedly keeping lawmakers uninformed about a Medicaid review revealing over $52 million in improper payments. They argue the delay prevented action on the report during the legislative session before the election.
House Speaker Lisa Demuth expressed dissatisfaction with Governor Walz’s administration’s handling of the fraud, accusing them of lack of accountability.
The Walz administration commissioned Optum for a third-party review of Medicaid, focusing on 14 high-risk services. The findings identified over $52 million in improper payments. However, it clarified that these payments do not always indicate fraud. The Department of Human Services (DHS) released a redacted version to the public in February, leading Republicans to demand full transparency to address legislative risks.
“Our election here in Minnesota is 29 days away. We’re just four weeks out, and you really have to wonder why they are refusing to do this,” Demuth commented.
The state legislature holds a slim DFL majority, creating political tension. The audit began in October 2025, amid growing fraud allegations. The issue intensified political pressure, ultimately affecting Governor Walz’s re-election campaign.
Sen. Jordan Rasmusson accused Democrats of minimizing the fraud issue, citing reluctance to acknowledge the problem’s scale.
DHS stated the report was redacted to protect Optum’s trade secrets and avoid providing criminals with potential fraud methods. An amendment by Rasmusson in April to make the full report public failed but passed in May as part of a budget package.
Under state law, DHS must share Optum reports with a legislative committee upon a joint request, but lawmakers cannot disclose protected information. Rasmusson requested the full report in June, and select lawmakers accessed it recently.
Rep. Dawn Gillman expressed disappointment over the timing, noting lawmakers must wait until the next legislative session to address the findings.
“The broader takeaway is that the Walz administration could have given us more access months ago,” Rasmusson stated.
Sen. John Hoffman opposed the notion that full access was necessary before fixing vulnerabilities.
After reviewing the unredacted report, Rasmusson argued it highlights systemic failures in program integrity and eligibility checks, suggesting Minnesota lags in safeguarding against fraud.
The DHS confirmed lawmakers now have access to the report, and Commissioner John Connolly emphasized their alignment with current laws. Fox News Digital reached out to Governor Walz’s office for comments.