The agency that runs Minnesota’s Medicaid program has said the verification process “was not a fraud determination.” Here’s a closer look at some of those claims, as well as what we know about fraud in Medicaid generally. Estimates of Medicaid Fraud Are MurkyAs for fraud in Medicaid overall, some degree of it clearly exists, as it does in other government programs. In fiscal year 2025, state Medicaid Fraud Control Units reported recovering a total of $2 billion from civil and criminal cases involving either fraud or abuse and neglect. (For context, combined state and federal Medicaid spending is more than $900 billion per year.)