This is another win for red state residents.
A Republican-led effort to clean up Medicaid spending in Indiana is now drawing renewed attention to ongoing fraud concerns in deep-blue Minnesota — offering a sharp contrast in how states manage taxpayer-funded programs.
Indiana Gov. Mike Braun says his administration has already uncovered hundreds of millions of dollars in savings by enforcing basic oversight rules that, he argues, should have been in place all along.
“Medicaid is jointly funded by the states and the federal government,” Braun said during a weekend interview. “Every state has waste in the system if they’re willing to look for it.”
According to Braun, Indiana’s review found individuals who should have transitioned to Medicare but remained on Medicaid, cases of people receiving benefits in more than one state, and pharmacies exploiting discounted drug programs for excessive profit.
“That’s not complicated reform,” Braun said. “It’s common sense.”
Minnesota Fraud Estimates Raise Alarms
Braun contrasted Indiana’s progress with the situation in Minnesota, where years of reported fraud involving government programs have prompted investigations and public concern.
A recent report from The Wall Street Journal cited estimates suggesting Minnesota may have lost more than $9 billion to fraud since 2018. The report detailed repeated schemes involving shell companies, falsified claims, and weak enforcement mechanisms.
Investigators described a pattern in which fraudulent organizations were able to operate for extended periods, cycling through new entities while continuing to bill taxpayer-funded programs.
Leadership and Oversight Under Scrutiny
Minnesota Gov. Tim Walz has acknowledged the seriousness of the issue, saying publicly that the failures occurred “on my watch” and that he is accountable for addressing them.
Walz’s administration has ordered a third-party audit of Medicaid billing through the state’s Department of Human Services and temporarily paused payments to certain programs while the review is underway.
In a statement to local media, Walz said public trust is essential for government programs to function effectively and emphasized that fraud diverts resources away from those who genuinely need help.
States Act While Washington Stalls
Braun argues that Indiana’s results show states do not need to wait for federal action to protect taxpayers.
“I ran a business for nearly four decades before entering public service,” Braun said. “If you don’t manage programs carefully, you invite waste. That’s true in business and it’s true in government.”
He added that during his time overseeing federal programs, payment errors and mismanagement were widespread — costing taxpayers billions nationwide.
As Medicaid continues to consume a growing share of state budgets, Braun says accountability is no longer optional.
“When states take responsibility and manage programs properly, the results come fast,” he said. “We’ve been at this for about a year — and we’re already seeing real savings for taxpayers.”
