Minnesota’s dramatic rise in autism treatment funding is drawing scrutiny from federal officials and state leaders, as questions mount over oversight of treatment centers and the handling of Medicaid dollars.

“And Martha, the front Minnesota, happened on a number of different platforms. The Vice President and Dr. Oz yesterday focused on the autism treatment centers, and the allegation is that the treatment centers would encourage parents to get a bogus diagnosis that their kid was autistic,” reporter Mike Tobin said.

Tobin said the alleged scheme involved financial incentives.

“The treatment center would then get a check and the parents would get a kickback,” he said.

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He added that many of the centers operated without required oversight.

“The treatment centers could not receive surprise inspections because they were not licensed. Now that licenses are required, only six out of more than 500 centers are even applying for the provisional license,” Tobin said.

According to Tobin, criticism from federal officials has extended to state leadership.

“Dr Oz says this goes all the way to the top of state leadership,” he said.

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Dr. Mehmet Oz addressed the issue directly, placing responsibility on state officials.

“This is not a problem with the people of Minnesota. It's a problem with the leadership of Minnesota and other states who do not take Medicaid preservation seriously. Any delay in services is going to be should be laid at the at the seat of Governor Walz,” Dr. Oz said.

The dispute comes as federal funds are being withheld.

“Now, Governor Tim Walz says the decision to withhold a quarter billion dollars in Medicaid money is an example of the Trump administration weaponizing the federal government and punishing the people in a blue state,” Tobin said.

Gov. Tim Walz responded by criticizing the move.

“The sense of retribution no state has experienced this before. How does taking and punishing children and elderly have anything to do with fighting fraud when that's not where this issue is taking place, it does nothing,” Walz said.

Funding for autism treatment in Minnesota has increased sharply in recent years.

“Now, in 2017, the money repaid to the state of Minnesota for autism treatment was less than $2 million by 2019 word got out that money was available. And then when COVID hit, the money really started moving. Until we see in 2024 almost $350 million paid out for autism treatment, quite an increase in cases,” Tobin said.

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The growth represents a significant increase over seven years, with funding rising from under $2 million in 2017 to nearly $350 million in 2024, according to Tobin’s report.

Federal officials have pointed to the rapid expansion and the licensing compliance rate as part of ongoing concerns, while state leaders continue to dispute the characterization of the funding dispute.

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