Send a news tip
Support Alpha News with a 100% Tax-Deductible Donation
Home Featured News Industry leader sounds alarm on fraud in Minnesota transportation program: ‘This DHS...

Industry leader sounds alarm on fraud in Minnesota transportation program: ‘This DHS apathy is disgusting’

Rep. Walter Hudson called the Minnesota Department of Human Services' explanation for the sharp drop in rides in the program "an insult to Minnesota's collective intelligence."

Michael Weidner, executive director of the Minnesota Paratransit Providers Association, testifies in the Minnesota House last week. (Minnesota House Info/YouTube)

Minnesota’s expansive — and expensive — taxpayer-funded transportation system is drawing renewed attention after an industry leader said rides in the state’s Non-Emergency Medical Transportation (NEMT) program have dropped by more than half as fraud investigations ramp up.

Michael Weidner, executive director of the Minnesota Paratransit Providers Association, said the dramatic drop raises questions about how much abuse may have been occurring inside a program that transports Medicaid recipients to medical appointments across the state — a problem he says he has been warning about for years.

“Fraud is not new to NEMT. What is new is DHS’ complete lack of any attempt or desire to curb fraud. This DHS apathy is disgusting,” said Weidner, referring to the Minnesota Department of Human Services (DHS).

According to Weidner, NEMT rides have decreased by 62% amid increased scrutiny of fraud.

“That’s a 62% reduction in rides. Where did they go? They just vanished,” he said during a meeting of the House fraud committee last week. “They weren’t picked up by any other nonemergency medical transportation department … It’s sad to say it but it seems like there’s at least 62% of the rides are fraudulent.”

In court documents, federal prosecutors have noted that the NEMT program “has been vulnerable to fraud.”

DHS responds

DHS said it is aware of the ride data but said the numbers may not yet reflect the full picture.

“The Minnesota Department of Human Services is aware of the decline in rides represented in the graphic and also in our own claims data. We can’t confidently state yet that there has been in fact a clear decline in rides, because providers have a year to bill. There are several months left for providers to bill from calendar year 2025,” the agency said.

DHS presented materials to the committee outlining anti-fraud steps it has taken within the NEMT program. Those steps include designating NEMT a high-risk program, instituting enhanced prepayment review, increasing site visits, placing a moratorium on new providers in metro counties, and more.

According to DHS, there are 71 open investigations into NEMT providers. In 2025 and so far in 2026, there have been 14 payment suspensions and five monetary recovery actions.

The agency rejected claims that it has failed to address fraud within Medicaid-funded programs.

“The Department of Human Services has been working nonstop to root out fraud from Medicaid programs, with particular focus on the 14 categories designated as high-risk, including NEMT. We have made hundreds of referrals to law enforcement and stopped payments to more than 1,300 providers since 2020. You can find more information about actions we have taken on this webpage.”

Rep. Walter Hudson: ‘Sick and tired of hearing excuses’

Minnesota Rep. Walter Hudson, R-Albertville, responded to DHS’ explanation for the decline in rides during last week’s committee meeting.

“This is infuriating. It’s beyond infuriating. I don’t even have any questions because frankly, I’m sick and tired of hearing excuses,” Hudson said.

“We’re looking here at this chart that shows, as has been discussed, a 62% drop in the number of rides. You can see that it starts to fall off in April of last year. And the speculative claim is that, ‘Well, you know, people are taking their time to bill.’ Oh, ok. ‘Can’t afford 30 bucks a month per vehicle to have cameras and GPS, margin just doesn’t make it possible. But I can wait six months to bill the state for my services.’ That makes a lot of sense,” added Hudson, who was speaking in a sarcastic tone.

“We’re talking about close to 400,000 rides not yet billed for in 2025. That’s what we’re supposed to believe? The absurdity,” he concluded. “It’s an insult to Minnesota’s collective intelligence to accept that premise and I, for one, am not going to submit to it.”

 

Jenna Gloeb

Jenna Gloeb is an Edward R. Murrow Award-winning journalist, media producer, public speaker, and screenwriter. Most recently, she worked as a reporter and on-air host for CCX Media. Jenna is a Minnesota native and resides in the Twin Cities with her husband, son, daughter, and two dogs.