New Medicaid fraud offense will now send offenders to prison after Attorney General Ellison’s intervention

AG Ellison’s bill to fight Medicaid fraud with new tools and resources, passed in May, created new penalties for committing Medicaid fraud: before, state law treated all theft above $35,000 equally, but AG Ellison’s bill created new offenses for theft over $100,000 and theft over $1,000,000

Following intervention from AG Ellison, Sentencing Guidelines Commission upgraded new offense from Severity Level 7 to Severity Level 8, which carries presumptive commitment to prison for all offenders

August 3, 2026 (SAINT PAUL) — Friday afternoon , the Minnesota Sentencing Guidelines Commission (MSGC) released their 2026 Sentencing Guidelines, which set the new offense of Medicaid fraud of over $1,000,000 at Severity Level 8 thanks to Attorney General Ellison’s urging. Severity Level 8 carries a presumptive commitment to prison, no matter the criminal history of the offender. Other Severity Level 8 crimes include criminal vehicular homicide, 1st degree aggravated robbery, and 1st degree burglary.

In Minnesota, the Legislature sets the maximum penalty for all criminal offenses when it enacts new statutes. Once a statute is enacted, the Minnesota Sentencing Guidelines Commission determines the Severity Level of the newly enacted law. The Severity Level of the offense, along with the offender’s criminal history, governs the presumptive sentence for a particular crime. For example, an offender with 0 criminal history points who commits a severity level 8 offense faces a presumptive commitment to state imprisonment of 48 months, otherwise known as 4 years in prison. Conversely, an offender with 0 criminal history points who commits a severity level 7 offense faces a presumptive stayed sentence of 36 months, meaning the offender only faces probation, with the possibility of up to 36 months in prison if the offender violates probation.  In Minnesota, district court judges ultimately determine each offender’s sentence, and they have limited power, which is proscribed by statutes and case law, to depart upward or downward from the presumptive sentence that is determined by the MSCG. The MSCG appointment process is governed by Minn. Stat. § 244.09, with the Chief Justice of the Supreme Court appointing three members and the Governor appointing the remaining members.

The Commission originally planned to set the theft of over $1,000,000 from Medicaid at Severity Level 7, for which the guidelines recommend a stayed sentence for first time offenders, which generally means probation rather than imprisonment. Other Severity Level 7 offenses include felony DWI and Financial Exploitation of a Vulnerable Adult (over $35,000). On July 15, 2026, Attorney General Ellison wrote the Sentencing Guidelines Commission a letter urging them to increase the severity level of the new offense to a Severity Level 8. During a July 23 meeting of the Commission, Attorney General Ellison’s recommendation clearly helped move the Commission to upgrade the offense, with one Commissioner noting his trust in the Attorney General as a minister of justice. 

“I am pleased that the state of Minnesota is now treating the theft of money from Medicaid with the severity it deserves,” said Attorney General Ellison. “Medicaid fraud robs Minnesota taxpayers, and it steals money meant to provide healthcare to our low-income neighbors. It’s a disgraceful crime, which is why I spent over a year working to pass my bipartisan bill increasing criminal penalties for Medicaid fraud and giving my team more tools and resources to crack down on fraudsters. I’m grateful to the Sentencing Guidelines Commission for their decision, and to Senator Johnson Stewart and Representative Norris for their partnership in passing this important legislation.” 

The new offense of Medicaid fraud of over $1,000,000 was created thanks to the Medical Assistance Protection Act (MAP Act), an anti-Medicaid fraud law that Attorney General Ellison, Senator Ann Johnson Stewart, and Representative Matt Norris spent over a year working to pass. The bill ultimately passed with overwhelming bi-partisan support and was signed into law earlier this year. The bill will take effect on August 1, 2026. 

Prior to the MAP Act’s passage, Minnesota law treated all Medicaid fraud (known as Medical Assistance at the state level) above $35,000 identically with respect to criminal penalties, meaning someone who stole $35,001 from Medical Assistance faced the same penalties as someone who stole $3,500,000. The 2026 MAP Act establishes new tiers of criminal penalties for Medical Assistance fraud over $100,000 and over $1,000,000 respectively. 

The MAP Act also improves Attorney General Ellison’s ability to investigate and prosecute fraudsters by:

Additional information on the contents of the MAP Act is available here.  

The Attorney General’s Office has already begun the hiring process for the new investigators and other staff members that will join the Office’s Medicaid Fraud Control Unit. 

Attorney General Ellison’s Medicaid Fraud Control Unit works to uncover, investigate, and prosecute individuals or organizations that steal from Medicaid and that exploit, neglect, or abuse vulnerable victims. The Medicaid Fraud Control Unit receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award totaling $5,078,704 for Federal fiscal year (FY) 2026. The remaining 25%, totaling $1,692,898 for FY 2026, is funded by the State of Minnesota.