Minnesota Autism Centers Face Funding Crisis Amid Medicaid Fraud Crackdown

Providers say inconsistent payments threaten critical services for families

Jan. 29, 2026 at 8:07pm

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Autism service providers in Minnesota are facing a funding crisis due to delayed and unpredictable Medicaid payments amid a statewide crackdown on fraud. Nonprofit organizations like MAC Midwest, which serves hundreds of families, say the uncertainty could force them to cut vital services, leaving many children without the consistent support they need.

Why it matters

The fraud investigations have led to new Medicaid prepayment review processes that have significantly delayed payments to autism centers, even though Minnesota's Medicaid improper payment rate is well below the national average. Providers say the impact on families could be devastating, as consistent therapy and support is critical for children with autism.

The details

MAC Midwest, a nonprofit autism service provider with 18 centers across Minnesota, says it is owed a significant amount of Medicaid payments for services already provided. The delays stem from the new prepayment review process, which has caused payments to take much longer than the usual two-week cycle. This has forced MAC Midwest to pause hiring new staff and face a shortage of resources, though they say cutting services is not an option as consistency is crucial for children with autism.

  • In December, allegations of widespread fraud in several Minnesota state programs gained national attention.
  • Minnesota recently rolled out a new Medicaid prepayment review process as part of a broader effort to combat fraud.

The players

MAC Midwest

A nonprofit autism service provider with 18 centers across Minnesota, serving about 300 families with a growing waitlist.

Bryan Jarcho

The regional operation director for MAC Midwest.

Elizabeth Walby

Leads the Rochester Area Autism Association and is concerned about the impact on families.

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What they’re saying

“Ultimately, this is not a long-term solution for us. There is no way we can continue at the current trend moving forward.”

— Bryan Jarcho, Regional Operation Director, MAC Midwest

“We're really supportive of the idea of of getting after fraud, waste and abuse — not at the expense of families and kids of Minnesota. It's just not acceptable.”

— Bryan Jarcho, Regional Operation Director, MAC Midwest

“It can be a really hopeless, you know, feeling, not having the support available that you have been told your child needs.”

— Elizabeth Walby, Leads Rochester Area Autism Association

What’s next

Providers say they need clearer guidance from state and federal leaders and are urging community members to contact their legislators about the impact these Medicaid payment delays are having on families.

The takeaway

This crisis highlights the delicate balance between combating fraud and ensuring critical services remain accessible for vulnerable populations. As Minnesota's Medicaid improper payment rate is already well below the national average, providers argue the crackdown is coming at the expense of families who rely on consistent, high-quality autism care.