$90M+ Medicaid Autism Fraud Ring Busted in Liberal Minnesota [WATCH]

Health and Human Services Secretary Robert F. Kennedy Jr. announced what he described as the largest autism fraud bust in American history, pointing to a dramatic rise in spending within an early intervention and development program and alleging widespread fraud involving false diagnoses and services that never occurred.

Speaking about the investigation, Kennedy highlighted spending figures that he said illustrated the scale of the problem.

“I want to start. I thought I was going to have a slide here. I want to call your attention to this, which is in your, okay, here it is, which is in your packet. This was the cost of your early intervention and development program in 2020 it was 38 point 1 million. This is what we expected to be paying every year. Instead, this year hit 442 million, and I’m showing you that because that’s the magnitude of the fraud and the damage that we’re talking about today,” Kennedy said.

Kennedy thanked multiple federal agencies and officials involved in the operation, including the Department of Justice, FBI, HHS Office of Inspector General, Centers for Medicare and Medicaid Services, Dr. Oz, the White House Anti-Fraud Task Force, Vice President J.D. Vance, and investigators and law enforcement personnel.

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“I want to thank Todd Blanch, who couldn’t be here today, Colin McDonald, and everyone at the Department of Justice for leading this effort. I want to thank also the FBI, who you’re going to hear from in a little while, the HHS Office of Inspector General, CMS, and especially Dr. Oz, the White House Anti-Fraud Task Force, and Vice President Vance, and the investigators, and law enforcement personnel, whose relentless work made today’s action possible,” Kennedy said.

Kennedy said the arrests stemmed from what he characterized as a coordinated criminal scheme targeting programs intended to help children diagnosed with autism.

“Today’s arrest represent the largest autism fraud bust in American history. This was not a paperwork error, it was not a technical violation. This was organized threat, organized theft that exploited the most vulnerable children in America. Deceived families stole taxpayer dollars meant to help children with autism with autism access legitimate care and support,” Kennedy said.

According to Kennedy, investigators uncovered billing for services that never existed, fraudulent diagnoses, and false care claims.

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“Investigators uncovered brazen schemes that build taxpayers for nonexistent services, fraudulent diagnoses, and fake care, while criminals enrich themselves at public expense,” Kennedy said.

Kennedy argued that fraudulent diagnoses and claims ultimately reduce resources available to children who genuinely need assistance.

“Every fraudulent autism diagnosis steals time, care, and resources on the children for whom this program was for whom this program was denied, and who desperately need this care,” Kennedy said.

He also pointed to broader concerns about autism-related spending and fraud within government health programs.

“America is facing a real autism crisis today. Approximately one in every 31 children is diagnosed with autism spectrum disorder. Medicaid finances a significant share of autism-related services nationwide, and spending has risen dramatically over the last decade, and a lot of that spending is because of fraud,” Kennedy said.

Kennedy said healthcare fraud costs taxpayers tens of billions of dollars each year and cited estimates placing the broader cost at $100 billion annually.

“When criminals exploit these programs, taxpayers lose billions, and vulnerable children lose their access to care. Health care fraud now costs the United States 10s of billions of dollars every year. Some, as some has placed the broader cost of health care fraud and improper payments at $100 billion annually,” Kennedy said.

Kennedy warned that unchecked fraud threatens the future of Medicaid and Medicare.

“That fraud drives up health care costs for all Americans. It weakens public trust, it drains taxpayer resources, and threatens the long-term stability of both Medicaid and Medicare. If we fail to confront the fraud aggressively, these programs will not survive for future generations in the form Americans rely upon them today,” Kennedy said.

Kennedy credited President Trump and Vice President Vance for directing what he called the most aggressive anti-fraud effort in American history and said the operation was completed with unusual speed.

“Under the leadership of President Trump and Vice President Vance, this administration is carrying out the most aggressive anti-fraud effort in American history,” Kennedy said. “That this was executed with a precision and speed that is unprecedented in the history of law enforcement, and it’s unprecedented now under Vice President Fances leadership and President Trump’s direction we are going to normalize this speed.”

Kennedy said the administration intends to continue targeting fraud while protecting federal healthcare programs.

“We’re restoring accountability, strengthening oversight, prosecuting criminal networks, and protecting the integrity of our public health systems, we will not allow criminals to treat children as billing opportunities, while American taxpayers foot the bill. This administration will continue rooting out fraud, because every stolen dollar is $1 taken from a child, a parent, a senior of a family who desperately needs help. We’re going to protect these programs and protect vulnerable children and restore integrity to American health care system.”

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