IF THE DEAD CAN VOTE, THEY SHOULD ALSO QUALIFY FOR MEDICAID
Minnesota Medicaid Scandal: Taxpayers Charged to House the Dead
Law Enforcement Today
Aug 24, 2025
MINNEAPOLIS, MN- A KARE11 investigation has reportedly uncovered new allegations of Medicaid fraud
in Minnesota's Housing Stabilization Services (HSS) program, including
taxpayer-funded payments for housing to people who were already dead.
One example of the alleged fraud reveals that Minneapolis-based Start
Today Hennepin (STH), a for-profit housing support company, billed
Medicaid for services supposedly provided to Realanda Rowland, a
chronically homeless woman, on the day she died and for three
consecutive weeks after her death in October 2022.
Video
from a Montana funeral service confirms Rowland was buried on October
25, 2022. That same day, records obtained by KARE11 show STH submitted
Medicaid claims for helping her "sustain housing." Minnesota's vital
records index also confirms that Rowland died two weeks earlier on
October 11.
This one case is tied to a larger pattern of alleged fraud tied to STH,
which has received more than $8.2 million in payments, according to
state data, making it the top biller in Minnesota's HSS program since
its inception.
The program was launched in 2020 to help elderly and disabled people in
Minnesota experiencing or at risk of homelessness find and maintain
housing.
It was initially projected to cost $2.6 million annually, but by 2024,
actual costs had ballooned to more than $100 million and were on pace to
top $120 million this year before the Minnesota Department of Human
Services announced in July its plans to shut the entire program down due
to fraud concerns.
KARE11's investigation discovered that DHS was repeatedly warned about
Start today Hennepin's billing practices for more than a year, including
that at least three clients had been billed after they had died.
Fern Snedeker, a former case manager at Start Today Hennepin, told
KARE11 that pressure to meet the company's billable hours quota and
obtain the bonus that came with meeting that quota led to fraud. "I did
provide services to folks," Snedeker said, "but because of the billable
hours requirement, I felt forced in order to keep my job, to commit
Medicaid fraud. Rather than actually serving vulnerable populations, it
became a numbers game."
He alleged that service time sheets were often fabricated and hours
exaggerated. He also provided KARE11 with records confirming an October
2024 whistleblower report to the Minnesota Attorney General's Medicaid
Fraud Control Unit, notifying them about the suspected HSS fraud. It was
not the first time the state was warned.
In March 2024, Hennepin Health, the county-run Managed Care
Organization, emailed Minnesota DHS, warning of "patterns of behavior
and billing that raised our eyebrows," identifying examples of patients
who appear to be housed, hospitalized, or incarcerated during billable
timeframes.
By July 2024, Hennepin Health formally referred Start Today to the DHS
Office of Inspector General for suspected fraud. Internal investigative
reports authored by Hennepin Health's Special Investigations Unit cited
more than $141,000 in alleged improper billing, tied to falsified or
missing documentation, and fabricated service records.
Among the findings that the county labeled as overpayment schemes were
Medicaid claims submitted on behalf of three deceased clients. KARE11
confirmed that the list includes Realanda Rowland.
In addition to the billing issues, officials discovered a possible
conflict involving a high-ranking Start Today executive. Hennepin County
filed a fiduciary abuse report against Start Today Hennepin's executive
director, Marty Laughlin, with DHS Adult Protection.
Hennepin records allege that Laughlin was also the financial guardian
for a non-verbal, wheelchair-using woman living in a group home and with
her mother. County Health Services personnel flagged that as a
potential conflict of interest and possible "fiduciary abuse" after
discovering Medicaid had been billed more than $15,000 in HSS services
on the woman's behalf by Start Today Hennepin.
Jennifer Porter is Start Today's owner and CEO. Records show that she
spoke with investigators in the summer of 2024 and admitted that the
times on billing records were made up. According to an internal
investigative report, Porter said, "STH is far too busy to make the
notes accurate on a per-client basis as they deal with far too many
clients each day."
Porter's social media feeds reveal numerous trips to Las Vegas and
exotic locales, along with pictures of champagne, caviar, and her
Mercedes-Benz.
Hennepin County told KARE11 that they have not received any repayment
from Start Today, including for the three dead clients whom the company
billed. While no criminal charges have been filed, multiple sources told
KARE11 that official investigations into STH remain underway.
In July 2025, federal agents executed search warrants at HSS providers'
offices and residences across the city. The raids, which did not include
STH, were part of a wide-ranging investigation into what the DOJ
described as a "massive scheme" to defraud the Medicaid-funded HSS
program.
In June 2025, State Today Hennepin reportedly voluntarily withdrew itself from the HSS program.
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