Days after the FBI raided two Minnesota autism centers as part of a wider investigation into the industry, state officials say they can’t disclose whether the centers are still operating.
The FBI raided Minneapolis and St. Cloud autism centers Thursday as part of an investigation into Medicaid fraud in Minnesota’s autism program that a search warrant application said revealed “substantial evidence” of millions of dollars in fraudulent claims. No criminal charges have been filed.
Federal officials are investigating the Early Intensive Developmental and Behavioral Intervention (EIDBI) health care program that’s funded by the state and federal government and serves people under 21 with autism spectrum disorder.
On Thursday, the FBI searched the Smart Therapy Center in Minneapolis and the Star Autism Center in St. Cloud. Minnesota Department of Human Services (DHS) spokeswoman Sarah Berg said the agency can’t say whether government dollars are still flowing to the centers, citing that, under state law, “stop payments” are not public because they are classified as a part of the investigative process.
If DHS determines a therapy provider is responsible for fraud, waste or abuse of the Medicaid program, it can take administrative actions, such as issuing fines. And if DHS finds credible allegations of fraud during an investigation, the provider’s payments are withheld until the investigation is complete.
Berg said DHS has been investigating Smart Therapy Center and Star Autism Center for months, and due to concerns about the integrity of EIDBI autism services, the agency stepped up its oversight over the last few months and is visiting all providers in the program.
“We are digging further into cases where we note concerns and will conduct formal investigations if and where needed,” Berg said in an email.
Minnesota doesn’t license autism centers, so there’s little regulatory oversight and DHS can’t track caseload size or staffing ratios. DHS plans to propose licensing standards to state lawmakers for the program in the upcoming legislative session. Berg said details about the proposed licensing standards will be public after Gov. Tim Walz releases his budget.