FBI raids Bloomington ICS provider; prosecutors allege $1M billed for 13 clients
Federal agents raided Bloomington provider Ultimate Home Health Services after prosecutors say the company billed Medicaid for more than $1 million for 13 clients between June 2024 and August 2025, including claims of 12 hours a day of care for a client later found dead. The case is part of a wider crackdown on the fast‑growing Integrated Community Supports program — spending rose from $4.6 million in 2021 to nearly $180 million by late 2025 — and recent payment suspensions and enforcement actions have left roughly 100 disabled Medicaid recipients facing housing instability or eviction.
📌 Key Facts
- FBI agents raided Bloomington provider Ultimate Home Health Services; prosecutors allege the company 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 for that client; the client’s mother disputed the billing.
- First Assistant U.S. Attorney Joseph Thompson said the Integrated Community Supports (ICS) program allowed providers to bill 'hundreds of dollars a day' per client.
- ICS spending exploded from $4.6 million in 2021 to nearly $180 million by late 2025 (about a 40‑fold increase); overall, more than $400 million has been paid out through the program since its launch.
- The Minnesota Department of Human Services previously suspended payments to 11 providers in September 2025 and five more in November 2025 over 'credible allegations of fraud,' affecting roughly 100 participants.
- Enforcement actions tied to the Bloomington raid and other ICS payment suspensions have left tenants in properties linked to raided or suspended providers being told to leave or facing eviction because landlords will not continue operating without ICS checks.
- Advocates and reporting say the rapid growth and subsequent 'flash‑freeze' of ICS payments occurred with little planning for where disabled residents would live after providers were cut off.
📊 Relevant Data
The Somali population in Minnesota is approximately 79,449, representing about 1.4% of the state's total population of around 5.7 million.
Somali population - Cultural communities — Minnesota Compass
39% of working-age Somali immigrants in Minnesota have no high school diploma, compared to 5% of natives.
Somali Immigrants in Minnesota — Center for Immigration Studies
58.2% of working-age Somali immigrants in Minnesota speak English less than 'very well', compared to 0.7% of natives.
Somali Immigrants in Minnesota — Center for Immigration Studies
The majority of Somalis in Minnesota arrived as refugees fleeing civil war in Somalia since the 1990s, resettled through the U.S. refugee program established by the Refugee Act of 1980 and assisted by voluntary agencies such as Lutheran Social Services and Catholic Charities.
Somali and Somali American Experiences in Minnesota — MNopedia (Minnesota Historical Society)
In Minnesota's welfare fraud scandals, including those involving Medicaid programs, the majority of charged individuals are Somali immigrants, despite them comprising only about 1.4% of the population.
Somali Welfare Fraud in Minnesota Has Cost American Taxpayers Billions — The Heritage Foundation
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- Connects the Bloomington Ultimate Home Health Services raid and other ICS enforcement actions to a wider metro pattern of tenants losing housing when providers are hit with payment stops.
- Shows ICS tenants in properties linked to raided or suspended providers being told to leave or facing eviction because landlords will not keep operating without ICS checks.
- Places the Bloomington case in the broader context of ICS going from $4.6M to nearly $180M a year, then being flash‑frozen with little planning for where disabled residents would live.
- 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.