RFK Jr. Says $90M Minnesota Fraud Ring Busted
Health and Human Services Secretary Robert F. Kennedy Jr. said federal investigators have broken up what he called the largest autism fraud bust in American history. He pointed to a sharp jump in spending tied to an early intervention and development program, and said the numbers point to a huge problem.
According to Kennedy, the program cost $38.1 million in 2020. He said that figure later exploded to $442 million. In his view, that kind of jump is not normal growth. It is a warning sign.
“I want to start. I thought I was going to have a slide here. I want to call your attention to this, which is in your, okay, here it is, which is in your packet. This was the cost of your early intervention and development program in 2020 it was 38 point 1 million. This is what we expected to be paying every year. Instead, this year hit 442 million, and I’m showing you that because that’s the magnitude of the fraud and the damage that we’re talking about today,” Kennedy said.
Kennedy also thanked a long list of people and agencies involved in the case. He named the Department of Justice, the FBI, the HHS Office of Inspector General, Centers for Medicare and Medicaid Services, Dr. Oz, the White House Anti-Fraud Task Force, Vice President J.D. Vance, and the investigators and law enforcement officers who worked the case.
“I want to thank Todd Blanch, who couldn’t be here today, Colin McDonald, and everyone at the Department of Justice for leading this effort. I want to thank also the FBI, who you’re going to hear from in a little while, the HHS Office of Inspector General, CMS, and especially Dr. Oz, the White House Anti-Fraud Task Force, and Vice President Vance, and the investigators, and law enforcement personnel, whose relentless work made today’s action possible,” Kennedy said.
He said the arrests came out of a coordinated scheme aimed at programs meant to help children diagnosed with autism. He said this was not a mistake or a billing glitch. He described it as theft.
“Today’s arrest represent the largest autism fraud bust in American history. This was not a paperwork error, it was not a technical violation. This was organized threat, organized theft that exploited the most vulnerable children in America. Deceived families stole taxpayer dollars meant to help children with autism with autism access legitimate care and support,” Kennedy said.
Kennedy said investigators found billing for services that never happened, fake diagnoses, and bogus care claims. He said the money was being pulled from the very programs that are supposed to help kids get real treatment.
“Investigators uncovered brazen schemes that build taxpayers for nonexistent services, fraudulent diagnoses, and fake care, while criminals enrich themselves at public expense,” Kennedy said.
He said the damage goes beyond the fraud itself. In his view, every fake claim means less help for children who actually need support.
“Every fraudulent autism diagnosis steals time, care, and resources on the children for whom this program was for whom this program was denied, and who desperately need this care,” Kennedy said.
Kennedy also tied the case to broader concerns about autism-related spending and waste in government health programs. He said the country is already dealing with a serious autism crisis and that Medicaid plays a major role in paying for services.
“America is facing a real autism crisis today. Approximately one in every 31 children is diagnosed with autism spectrum disorder. Medicaid finances a significant share of autism-related services nationwide, and spending has risen dramatically over the last decade, and a lot of that spending is because of fraud,” Kennedy said.
He argued that health care fraud is not some side issue. He said it hits taxpayers hard and leaves vulnerable people worse off.
“When criminals exploit these programs, taxpayers lose billions, and vulnerable children lose their access to care. Health care fraud now costs the United States 10s of billions of dollars every year. Some, as some has placed the broader cost of health care fraud and improper payments at $100 billion annually,” Kennedy said.
Kennedy said that kind of fraud drives up costs for everyone and puts pressure on Medicaid and Medicare. He warned that if fraud is not attacked aggressively, the programs will keep getting weaker.
“That fraud drives up health care costs for all Americans. It weakens public trust, it drains taxpayer resources, and threatens the long-term stability of both Medicaid and Medicare. If we fail to confront the fraud aggressively, these programs will not survive for future generations in the form Americans rely upon them today,” Kennedy said.