FBI raids Bloomington ICS provider; prosecutors allege $1M billed for 13 clients
Federal agents raided Bloomington-based Ultimate Home Health Services after prosecutors allege the company billed Medicaid for more than $1 million for 13 clients between June 2024 and August 2025, including a claim of 12 hours per day of services for a client who was later found dead. The action is part of a broader crackdown on Minnesota’s rapidly expanding Integrated Community Supports program — which grew from $4.6 million in 2021 to nearly $180 million by late 2025 and has paid out over $400 million since launch — where payment suspensions to multiple providers over fraud allegations have left some disabled recipients facing sudden housing loss.
📌 Key Facts
- FBI raided Bloomington Integrated Community Supports (ICS) provider Ultimate Home Health Services; federal prosecutors allege the company billed Medicaid more than $1 million for 13 clients between June 2024 and August 2025.
- In one case cited by prosecutors, a client was found dead although the provider had billed for 12 hours per day of services; the client's mother disputed those billing claims.
- First Assistant U.S. Attorney Joseph Thompson said the ICS program allowed providers to bill "hundreds of dollars a day" per client.
- ICS spending grew from $4.6 million in 2021 to nearly $180 million by late 2025, and more than $400 million has been paid out since the program's launch.
- Minnesota DHS suspended payments to 11 providers in September and five more in November over "credible allegations of fraud," affecting roughly 100 participants.
- The Bloomington raid and other ICS enforcement actions are part of a wider metro pattern in which tenants in properties linked to raided or suspended providers have been told to leave or face eviction because landlords will not continue operating without ICS payments.
- Critics say the program was effectively "flash‑frozen" by enforcement actions with little planning for where disabled residents would live, leaving some without housing when providers' payments were stopped.
📊 Relevant Data
In 2024, Black individuals accounted for 1,862 out of 6,372 drug abuse arrests in Minnesota, representing a rate of approximately 459 per 100,000 population, compared to 86 per 100,000 for White individuals.
2024 BCA Uniform Crime Report — Minnesota Bureau of Criminal Apprehension
In 2024, American Indian or Alaskan Native individuals accounted for 504 out of 6,372 drug abuse arrests in Minnesota, representing a rate of approximately 621 per 100,000 population, compared to 86 per 100,000 for White individuals.
2024 BCA Uniform Crime Report — Minnesota Bureau of Criminal Apprehension
The Somali population in Minnesota has a poverty rate of 36.4%, compared to the overall state poverty rate of 9.3%.
Somali population - Cultural communities — Minnesota Compass
52.3% of children in Somali immigrant households in Minnesota live in poverty, compared to 7.6% in native-headed households.
Somali Immigrants in Minnesota — Center for Immigration Studies
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- Connects the Bloomington Ultimate Home Health Services raid and other ICS enforcement actions to a wider metro pattern of tenants losing housing when providers are hit with payment stops.
- Shows ICS tenants in properties linked to raided or suspended providers being told to leave or facing eviction because landlords will not keep operating without ICS checks.
- Places the Bloomington case in the broader context of ICS going from $4.6M to nearly $180M a year, then being flash‑frozen with little planning for where disabled residents would live.
- Prosecutors allege Ultimate Home Health Services billed Medicaid for more than $1 million for 13 clients between June 2024 and August 2025.
- In one case, a client was found dead despite the provider claiming 12 hours/day of services; the client’s mother disputed the billing.
- Integrated Community Supports (ICS) spending grew from $4.6M in 2021 to nearly $180M by late 2025 (nearly 40x growth); over $400M has been paid out since launch.
- Quote from First Assistant U.S. Attorney Joseph Thompson that ICS allowed providers to bill 'hundreds of dollars a day' per client.
- DHS previously suspended payments to 11 providers in September and five more in November over 'credible allegations of fraud,' affecting roughly 100 participants.