Minnesota DHS suspends payments to 11 adult disability providers over fraud allegations

Key Takeaways:

• The Minnesota Department of Human Services has suspended payments to 11 adult disability providers.
• The suspension stems from what DHS calls “credible allegations” of fraud.
• These providers serve adults with disabilities, potentially jeopardizing services.
• Temporary Commissioner Shireen Gandhi outlined the allegations in a letter.
• The information was reported by Minnesota Cbs Local on September 26, 2025.

Background

The Minnesota Department of Human Services (DHS) recently announced the suspension of state payments to 11 providers serving adults with disabilities. This decision was reportedly driven by what the agency characterizes as “credible allegations” of fraud, raising concerns among healthcare and consumer advocates.

The Allegations

In a letter authored by Temporary Commissioner Shireen Gandhi, the DHS detailed the basis for its actions. Though the exact circumstances have not been publicly released, the term “credible allegations” underscores the gravity of the situation. The fraud concerns, according to that letter, warranted an immediate halt in funding.

Impact on Disability Services

Each of the 11 providers serves adults with disabilities, meaning this suspension could affect crucial services. However, the DHS has not yet released details on how the people relying on these providers might be impacted. The immediate freeze on payments marks a significant step and indicates the severity with which the department views the allegations.

Commissioner’s Statement

Temporary Commissioner Shireen Gandhi’s letter, obtained by WCCO, underscores the state’s commitment to confirming the legitimacy of its providers. While no direct commentary from the commissioner was quoted beyond the letter’s content, it highlights the agency’s attention to potential misuse of state funds.

Next Steps

At this time, DHS has issued no public timeline for either reinstating payments or completing the investigation. The direct citation of “credible allegations” of fraud by the Minnesota DHS serves as the main basis for maintaining the suspension until further notice. Additional details may become available as the investigation proceeds, but no further official statement is currently available.