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Minnesota stiffens prison terms for big Medicaid fraud

Minnesota has raised the penalty for Medicaid fraud over $1,000,000 by placing those offenses at Severity Level 8 on the state sentencing grid, creating a presumptive prison sentence effective August 1, 2026.[1]

The change comes as part of new guidelines that make large-scale medical-assistance fraud more likely to result in prison time rather than probation or diversion.[1]

The 2026 MAP Act created the new penalty tiers for medical-assistance fraud above $100,000 and above $1,000,000.[1] Previously, any theft above $35,000 carried the same penalty range, leaving the largest frauds subject to the same sentencing band as smaller cases.[1]

The Minnesota Sentencing Guidelines Commission had initially considered assigning million-dollar fraud to Severity Level 7, which often leads to probation, but after deliberation raised it to Level 8.[1] Attorney General Keith Ellison publicly supported the tougher guideline, saying Medicaid fraud steals from taxpayers and low-income patients.[1]

  1. FOX 9
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📌 Key Facts

  • Effective August 1, 2026, Medicaid fraud over $1,000,000 is set at Severity Level 8 on Minnesota’s grid, triggering a presumptive prison sentence.
  • The 2026 MAP Act created new penalty tiers for medical assistance fraud over $100,000 and over $1,000,000; previously, any theft above $35,000 carried the same penalty range.
  • The Sentencing Guidelines Commission initially considered Severity Level 7 (often probation) for $1 million‑plus fraud but raised it to Level 8 after deliberation.
  • AG Keith Ellison publicly backed the tougher guideline, arguing Medicaid fraud steals from taxpayers and low‑income patients.

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August 03, 2026