FBI raids Bloomington ICS provider; prosecutors allege $1M billed for 13 clients
The FBI raided a Bloomington business whose license had been suspended amid fraud allegations after prosecutors say Ultimate Home Health Services billed Medicaid more than $1 million for 13 clients between June 2024 and August 2025, including a case in which a client was later found dead despite claims of 12 hours per day of service. Prosecutors say the state’s Integrated Community Supports program — which grew from $4.6 million in 2021 to nearly $180 million by late 2025 and has paid out over $400 million since launch — was vulnerable to fraud, and DHS suspended payments to multiple providers amid “credible allegations of fraud” affecting roughly 100 participants.
📌 Key Facts
- Prosecutors allege Ultimate Home Health Services billed Medicaid for more than $1 million for 13 clients between June 2024 and August 2025.
- In one alleged instance, a client was found dead despite the provider claiming 12 hours per day of services; the client's mother disputed the billing.
- Federal prosecutors say Minnesota's Integrated Community Supports (ICS) program grew rapidly — spending rose from $4.6 million in 2021 to nearly $180 million by late 2025 (about 40x growth) — and over $400 million has been paid out since the program's launch.
- First Assistant U.S. Attorney Joseph Thompson said ICS allowed providers to bill "hundreds of dollars a day" per client.
- Minnesota DHS previously suspended payments to 11 providers in September and five more in November over "credible allegations of fraud," affecting roughly 100 participants.
📊 Relevant Data
Of the 86 individuals charged in the Federal Child Nutrition Program fraud in Minnesota, 78 are of Somali descent.
Probing Trump's Verbal Attack on Somalis — FactCheck.org
Approximately 78% of individuals of Somali ancestry in Minnesota receive Medicaid, compared to 18% of native-born American households.
Probing Trump's Verbal Attack on Somalis — FactCheck.org
The poverty rate among Somalis in Minnesota is 38%, compared to the statewide rate of 9.3%.
Probing Trump's Verbal Attack on Somalis — FactCheck.org
Minnesota’s Housing Stabilization Services Program costs increased from $21 million in 2021 to $104 million in 2024 due to fraud, attributed to low barriers to entry and minimal records requirements.
Probing Trump's Verbal Attack on Somalis — FactCheck.org
📰 Sources (2)
- Prosecutors allege Ultimate Home Health Services billed Medicaid for more than $1 million for 13 clients between June 2024 and August 2025.
- In one case, a client was found dead despite the provider claiming 12 hours/day of services; the client’s mother disputed the billing.
- Integrated Community Supports (ICS) spending grew from $4.6M in 2021 to nearly $180M by late 2025 (nearly 40x growth); over $400M has been paid out since launch.
- Quote from First Assistant U.S. Attorney Joseph Thompson that ICS allowed providers to bill 'hundreds of dollars a day' per client.
- DHS previously suspended payments to 11 providers in September and five more in November over 'credible allegations of fraud,' affecting roughly 100 participants.