Hundreds gather for town hall on harm caused by Minnesota fraud mitigation

More than 700 Minnesotans gathered virtually on February 4 for a statewide discussion to address harm caused by recent Minnesota […]

Photo of David Dively, wearing headphones

More than 700 Minnesotans gathered virtually on February 4 for a statewide discussion to address harm caused by recent Minnesota Medicaid fraud mitigation efforts. The event titled, “Let’s Talk About Disability Services in Minnesota,” was hosted by the Minnesota Council on Disability (MCD).

The purpose of the meeting was to let members of the public and legislators know how new anti-fraud measures were affecting real people. Throughout the meeting testimony revealed that delayed payments caused agency closures, caregiver layoffs, and Minnesotans with disabilities left without essential care.

“This is not a theoretical harm,” said MCD Executive Director David Dively, at the opening of the event. He noted that there has already been a death associated with these sudden lapses in service.

Photo of David Dively, wearing headphones
David Dively, executive director of Minnesota Council on Disability

A poll conducted during the meeting underscored the community’s panic: 80 percent of attendees reported feeling either “concerned,” “overwhelmed,” or “afraid.”

Comments and microphones were turned off for community members. The only way to interact was to send emails to the moderator.

The Human Cost of Bureaucracy

The event became emotional when Minnesotans with disabilities began testifying about the real-world impact of policy decisions.

A wheelchair user who relies on a team of 12 caregivers to live independently, testified that she received notice on New Year’s Eve that her agency’s payments had been suspended. She described the terror of facing institutionalization—a move that would disrupt her career, her family life, and the independence she has worked hard to achieve.

“We should not need to justify our right to exist,” she told the attendees, demanding that Minnesotans with disabilities stop being treated as “disposable pawns” in a political chess match.

Another Minnesotan testified about how disruption in services affected her life. “I cannot eat, I cannot shower, I cannot change my clothes,” she said, describing the reality of service interruptions. She also highlighted the exhausting redundancy of the system, noting she must constantly “re-justify” her need for a wheelchair and communication device every five years, despite her disability being permanent.

State Response and the “Squeaky Wheel”

State officials and legislators attended the town hall as well.

Lieutenant Governor Peggy Flanagan joined the call to let everyone know she is aware of issues and working on solutions. While maintaining that fraud prevention is necessary, Flanagan admitted that state actions alone haven’t been enough to protect vulnerable citizens and promised that the administration is appealing federal decisions that threaten funding.

Some of the speakers at the February 4 2026 “L:et’s Talk About Disability Services” online panel discussion.
Clockwise from top left, ASL interpreter, moderator Quinn Nystrom, Sen. Jim Abeler, Sen. Paul Utke

DHS Director Heidi Hamilton also spoke, acknowledging communication missteps by the department, citing unprecedented pressure from federal oversight as a driving force behind the aggressive audits.

Sen. Jim Abeler (35, R) was critical of the current process, particularly the “credible allegation of fraud” standard that freezes funding for honest providers without due process. “You are not a statistic,” Abeler told the virtual crowd.

The event concluded with a unified call to action from organizers and legislators alike.
“Be squeaky,” Representative Kim Hicks (25A, D) said. She urged the community to contact their legislators, county commissioners, and case managers to ensure that the human rights of Minnesotans with disabilities are not lost in a spreadsheet.

As the 2026 legislative session approaches, the message from the town hall was clear: The disability community must not be silent while their lives and independence are on the line.


MN caregivers can earn a $100 stipend and a $0.40 raise by attending home care orientation training starting January 2027.
Woman holding a phone with text about Medicaid work requirements and potential exemptions from the Department of Human Services.