85 Minnesota Autism centers under investigation in Medicare fraud probe
News | By Easton Martin | July 17, 2025
Minnesota’s Department of Human Services (DHS) has launched investigations into 85 autism treatment centers, roughly one-fifth of all providers in the state, amid rising concerns over fraudulent Medicaid billing.
Since late 2023, DHS and FBI actions have intensified following federal raids on Minneapolis’s Smart Therapy and St. Cloud’s Star Autism Center, which are accused of billing for millions in services that were never provided.
The rapid growth of the state’s Early Intensive Developmental and Behavioral Intervention program has raised alarms. Providers increased from just 41 in 2018 to over 450 today, with Medicaid claims soaring from 1.7 million dollars to nearly 400 million dollars in 2023. Investigators allege alarming practices, including billing for therapists who were out of the country and using unqualified staff.
DHS has responded with heightened oversight by labeling all providers high risk, mandating enhanced background checks and unannounced site visits. The agency is also pushing for official licensing of autism centers by January 2027, aligning them with daycare regulations.
