‘It’s a scam’: Minnesota mother speaking out after she says Medicaid-funded program falsified documents, billed for 30 hours worth of services she never received — all at taxpayer’s expense

The Housing Stabilization Services program of Minnesota

Minnesota’s HSS program is one of the first of its kind in the country. This Medicaid-backed program provides support for those looking for low-income housing, help with moving expenses and guidance on transition and housing retention services. The goal of the program is primarily to help older adults and people with disabilities find and keep safe and affordable housing.

However, the program is unlicensed, and the Minnesota Department of Human Services (DHS) told KARE 11 it currently has 40 active fraud investigations into its service providers. The DHS also reported to KARE 11 that the program became difficult to manage as demand was much higher than anticipated.

“HSS has surpassed what was initially projected … in terms of the number of individuals enrolled in the program and providers delivering services. This rapid growth has brought additional challenges to build and implement quality assurance and oversight that matches the unforeseen scale of the program," the DHS wrote to KARE 11.

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Lien’s false records

When Lien reported her case to KARE 11 for investigation, they asked her to reach out to Brilliant Minds and request copies of all her records.

For nearly a month between March and April of this year, Brilliant Minds' records show that every Friday and Saturday morning, a case worker was helping Lien find housing, a service she never requested and didn’t need.

Further falsified records show that a case worker allegedly met with her for an in-person intake session on March 8 — the same time she was attending a local group counselling session.

“Everything listed is a complete lie," Lien told KARE 11.

The news station attempted to contact Brilliant Minds several times for comment, but found their phone line had been disconnected and that their office was dark and locked during their regular business hours.

They finally responded through email, saying, “All services rendered — both direct and indirect — were thoroughly documented in our Electronic Health Record (EHR) system … The client was discharged after approximately four weeks due to the client’s continued lack of engagement, and as such, no further billing occurred beyond that period.”

However, Lien provided KARE 11 with proof of her continued attempts to contact her case worker through texts and email.

Following the news station’s report, the DHS increased the risk level for HSS service providers from “limited” to “high” risk. The providers will now be subject to unannounced drop-in visits from DHS personnel and other measures to ensure their compliance.

The burden on taxpayers

In Lien’s case, KARE 11 reports her falsified records amount to a $2,060 bill — funded by local taxpayers — and all she has to show for it is a vacuum cleaner.

Costs for the HSS program have risen exponentially since its inception in 2020. Then, the program cost approximately $3.25 million. In 2024, the cost was almost $92 million, and Brilliant Minds submitted over $1 million in claims.

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What can vulnerable communities do?

Though each state approaches housing-related services for Medicaid beneficiaries differently, clients of the programs can ask for full records of their case files if they feel their case is being mishandled, or if they’re facing long wait times for responses like Lien.

The Minnesota DHS also lists a number of other housing assistance programs that low-income residents can take advantage of.

And at the federal level, the Housing Choice Voucher Program allows individuals to apply for a subsidy that covers part of their rent, and is paid directly to their landlord.