Comment by cogman10

7 hours ago

5 years ago. And it looks like the state was actually taking pretty aggressive moves against the fraud including ongoing investigations and legislation to shut down the fraud. [1]

There was active prosecution ongoing literally right up until Shirly's video. That's taking the matter seriously.

[1] https://en.wikipedia.org/wiki/2020s_Minnesota_fraud_scandals

>There was active prosecution ongoing literally right up until Shirly's video

Oh yeah, the prosecution was sooo active that all the daycares listed as operational and receiving funding, had no kids in them, had blacked out or boarded up windows, misspelled signs, and if you went in to ask for enrollment 3 angry men would come out shouting at you. How many legit daycares have you seen that look like that?

  • Yes, because when I enroll a child in a daycare I start by wandering around the facilities with a camera man and then I demand to see the children. But sure is suspicious that this place has no kids in it when I visit it outside it's posted operation hours.

    Nick did a day worth of shooting, didn't follow up, and didn't check basic things like hours of operation.

    • Right, everybody, especially the author of this piece, agrees that what Shirley did was bad and stupid. And also unnecessary, because we had documentary evidence from the Minnesota government itself showing the scale of the fraud here.

      5 replies →

    • >I start by wandering around the facilities with a camera man

      How does one wandering around with a camera affect the fact that the daycares had blacked out or boarded up windows, misspelled signs, and if you went in to ask for enrollment then 3 angry men would come out shouting at you?

      Do you even hear yourself? Are they Schrodinger's daycares? Do they become compliant the moment you stop filming them?

      8 replies →

To put it mildly I don't think there's a consensus among Minnesota DFL-types who paid attention to this that the state at any point took the matter seriously in proportion to its severity. There's a lot of evidence that they did the opposite thing. I try to avoid openly identifying my partisan commitments (see this whole thread for why) but: this shit is what we Democrats constantly dunk on the GOP for doing, and we're not acquitting ourselves well here.

It's annoying that we're talking about this in these terms, because the article is about public services fraud, and it's mostly technical, and it's an interesting subject. We shouldn't have to debate Tim Walz to engage with it.

The volume of prosecution that had occurred or was slated to occur was laughable compared to the amount of fraud known or reasonably believed to have occurred. When it is done at scale, prosecution is inefficient and much less effective than reforming processes so as to preempt fraud, which is not something that happened, as evidenced by the continuing fraud after the initial round of prosecution.

FTA:

> So-called “pay-and-chase”, where we put the burden on the government to disallow payments for violations retrospectively, has been enormously expensive and ineffective. Civil liability bounces off of exists-only-to-defraud LLC. Criminal prosecutions, among the most expensive kinds of intervention the government is capable of doing short of kinetic war, result in only a ~20% reduction in fraudulent behavior. Rearchitecting the process to require prior authorization resulted in an “immediate and permanent” 68% reduction. (I commend to you this research on Medicare fraud regarding dialysis transport. And yes, the team did some interesting work to distinguish fraudulent from legitimate usage of the program. Non-emergency transport for dialysis specifically had exploded in reimbursements—see Figure 1— not because American kidneys suddenly got worse but because fraudsters adversarially targeted an identified weakness in Medicare.)