Minnesota Department of Human Services to Replace Fraud-Ridden Housing Stabilization Services Program
The Minnesota Department of Human Services (DHS) is planning to replace its Housing Stabilization Services (HSS) program, a Medicaid initiative that was shut down last year due to widespread fraud. The agency intends to develop a new program and a legislative proposal for 2028 as part of the state's Olmstead Plan, which aims to help people with disabilities live in community settings rather than institutions. Minnesota pioneered the Medicaid-funded HSS program in 2020, designed to assist elderly and disabled individuals, those transitioning from residential care, and people with substance use disorders in navigating the housing market and covering moving costs. Federal prosecutors have charged over a dozen individuals in fraud cases related to HSS, totaling at least $26 million, with one recent conviction in a $4.3 million scheme. The program, initially projected to cost $2.6 million annually, peaked at over $104 million in 2024, with many providers allegedly not delivering services.