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Run by the Minnesota Department of Human Services, with federal oversight by the Centers for Medicare & Medicaid Services

Autism therapy (EIDBI), a Medicaid benefit

The Early Intensive Developmental and Behavioral Intervention (EIDBI) benefit serves Minnesotans under 21 with autism spectrum disorder. The Office of the Legislative Auditor (OLA) reports that total program cost grew from $38.1 million in 2020 to $324.9 million in 2024. Growth itself is not fraud, but prosecutors have charged multiple providers. The first EIDBI charge came in September 2025, and that defendant pleaded guilty in December 2025. The operator of Star Autism Center, charged in December 2025, pleaded guilty in March 2026. The largest case, a $46.6 million billing scheme, was indicted in May 2026.

How the scheme worked, per prosecutors and auditors

Charging documents describe kickbacks of roughly $300 to $1,500 per month paid to parents to enroll children, enrollment regardless of medical necessity, unqualified staff billed as behavioral technicians, and billing for one-on-one therapy not actually provided. The Office of the Legislative Auditor (OLA) found the Minnesota Department of Human Services (DHS) declined to investigate kickback-only complaints under a mistaken reading of its own authority.

Where things stand

Program operating under three restrictions. New provider agencies are frozen out by a moratorium effective November 1, 2025, extended through October 31, 2026. DHS provider news through late September 2026 announced no further extension. Every agency must hold a provisional license (applications were due May 31, 2026). Claims are checked before they are paid (prepayment review). As of September 2026, the Minnesota Department of Human Services (DHS) acknowledged a backlog of about 1,000 fee-for-service treatment-plan authorizations. Prosecutions ongoing.

The key numbers

Each figure says what it measures. A spending total is not a fraud amount.

Program spending
$38.1M
EIDBI program cost, 2020
Official retrospective report source:Legislative AuditorCalendar year 2020· data through March 17, 2026
Program spending
$324.9M
EIDBI program cost, 2024
Official retrospective report source:Legislative AuditorCalendar year 2024· data through March 17, 2026
Documented count
nearly 1,400people
EIDBI recipients, 2020
Official retrospective report source:Legislative AuditorCalendar year 2020· data through March 17, 2026
Documented count
more than 5,600people
EIDBI recipients, 2024
Official retrospective report source:Legislative AuditorCalendar year 2024· data through March 17, 2026
Alleged amount
$46.6M
Amount billed in the largest charged EIDBI case
Primary source:Justice DepartmentMay 2020 through December 2024· data through May 21, 2026
Alleged amount
more than $14M
Amount obtained in the first EIDBI charge
Primary source:U.S. Attorney, MinnesotaNovember 2019 through December 2024· data through September 24, 2025

People charged in this program

All selected defendants →

A starter set of principal defendants, not a complete list. Each status comes from a documented court step.

Asha Farhan Hassan

Owner, Smart Therapy LLC (autism-therapy, or EIDBI, provider)

Pleaded guilty
AllegedShamso Ahmed Hassan

Shareholder, Smart Therapy Center LLC and Star Autism Center LLC

Charged
AllegedHanaan Mursal Yusuf

Autism-therapy (EIDBI) provider and biller, Smart Therapy Center LLC

Charged
Abdinajib Hassan Yussuf

Operator, Star Autism Center LLC (autism-therapy, or EIDBI, provider, St. Cloud)

Pleaded guilty

Milestones

  1. September 24, 2025ChargesAutism therapy (EIDBI)

    First autism-program fraud charge

    Asha Farhan Hassan is charged with wire fraud in a $14 million autism-therapy (EIDBI) scheme, the first charge in the autism-program investigation.

  2. November 1, 2025ReformAutism therapy (EIDBI)

    Moratorium on new EIDBI provider agencies

    With approval from the federal Centers for Medicare & Medicaid Services (CMS), the Minnesota Department of Human Services (DHS) stops enrolling new autism-therapy (EIDBI) provider agencies. Initially set to end April 30, 2026, the freeze is later extended through October 31, 2026. Every existing agency must apply for a provisional license by May 31, 2026 or be dropped from the program.

  3. March 17, 2026Audit / reviewAutism therapy (EIDBI)

    Legislative Auditor faults DHS on kickback complaints

    The Legislative Auditor finds the Department of Human Services has long had legal authority to act on kickback complaints in the autism-therapy (EIDBI) program, despite the department saying it did not. The review also finds a decades-old error in the department’s rules that may limit payment suspensions.

People charged but not convicted are presumed innocent, and amounts labeled alleged come from charging documents, not proven losses. Method and corrections