Former state agency directors call new Medicaid fraud task force a ‘sham’ - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
August 1, 2026 Newswires
Share
Share
Post
Email

Former state agency directors call new Medicaid fraud task force a ‘sham’

"Clark Kauffman"Denison Bulletin & Review

Two former directors of the state agency that oversees Medicaid fraud investigations said Friday that Iowa Attorney General Brenna Bird's newly formed fraud task force is "political theater."

Dean Lerner and Kevin Techau, who served as directors of the Iowa Department of Inspections and Appeals under Democratic governors Tom Vilsack and Chet Culver, said Bird, a Republican, is "leaving millions of dollars on the table" by not working to fully fund Iowa's existing Medicaid Fraud Control Unit.

Bird, who is seeking reelection this year, heads the newly formed, 11-member Medicaid Fraud Elimination Task Force, which was created to develop recommendations on how to reduce fraud to stop incidents of fraud in the taxpayer supported healthcare program.

GET THE MORNING HEADLINES.SUBSCRIBE

Gov. Kim Reynolds signed an executive order July 1 creating the task force, which is expected to produce a final report that will be submitted by Oct. 29, 2026.

Dean Lerner, left, and Kevin Techau have each served as director of the Iowa Department of Inspections and Appeals. (Photo by Clark Kauffman/Iowa Capital Dispatch)

Techau, who has served as the U.S. Attorney for Northern District of Iowa, and Lerner held a press conference Friday at which they described the task force as a "sham." The two said Iowa's Medicaid Fraud Control Unit, which was created in the 1970s and operates within the state agency they once headed, is best suited to address Medicaid fraud — in part because 75% of the cost of its operations is funded by the federal government.

Also, Techau said, for every dollar the unit spends, it generates $4 to $5 in revenue that's collected through reimbursements and civil and criminal penalties.

Calls and emails to Bird's office were not returned Friday.

Lerner said Friday that part of the problem is that Iowa has chosen not to fully staff its Medicaid Fraud Control Unit. That decision, he said, limits the number of cases that can be investigated and the amount of taxpayer dollars that can be recovered.

While each of the 50 states has its own Medicaid Fraud Control Unit, a 2024 report from the Office of Inspector General at the U.S. Department of Health and Human Services says that Iowa has a history of providing far less funding for its MFCU than states with comparable levels of Medicaid spending.

Data from the National Association of Medicaid Fraud Control Units indicates there were five states that in 2022 had Medicaid budgets within $1.5 billion of the $8 billion spent by Iowa Medicaid that year.

All five of those states had MFCUs with budgets that were two to four times that of Iowa's unit. In fact, some states with far smaller Medicaid budgets than Iowa spent significantly more on their fraud control units.

The latest data from the national association is from 2025, and indicates Iowa still lags behind many states with similar or smaller levels of Medicaid spending:

Iowa: 10 MFCU staffers to oversee $8.3 billion in Medicaid spending.

Arkansas: 23 MFCU staffers to oversee $8.9 billion in Medicaid spending.

Kansas: 16 MFCU staffers to oversee $6.5 billion in Medicaid spending.

Mississippi: 35 MFCU staffers to oversee $7.7 billion in Medicaid spending.

Utah: 22 MFCU staffers to oversee $5.3 billion in Medicaid spending.

Kentucky: 16 MFCU staffers to oversee $6.4 billion in Medicaid spending.

Commentary: Don't create political theater — fund the Medicaid fraud fighters

Techau: Better data analytics can uncover fraud

In 2022, the inspector general reviewed the work of Iowa's MFCU and praised it for operating effectively but noted the unit was leaving positions vacant and was not maintaining its own approved staffing levels.

The inspector general said adding more staff "would ultimately enhance the unit's ability to protect the Medicaid program and its beneficiaries," but state officials disagreed and argued current levels of staffing were adequate.

"Iowa doesn't need another task force to tell us how to fight Medicaid fraud," Techau said Friday. "We already have trained investigators, a Medicaid Fraud Control Unit, the Iowa False Claims Act, whistleblower protections and experienced federal, state and local law-enforcement partners. The question is whether Iowa is willing to adequately fund them and aggressively use the tools we already have."

Lerner and Techau made several recommendations on how Iowa could better combat Medicaid fraud, including:

— Staffing: Fully fund Iowa's Medicaid Fraud Control Unit with the full number of authorized qualified investigators and staff.

— Analytics: Modernize investigative technology and data analytics to better detect suspicious billing patterns that point to Medicaid fraud.

— Hotline: Restore and actively promote a statewide Medicaid Fraud Hotline.

— Partnerships: Fully empower the Iowa Auditor of State and other independent agencies to investigate fraud.

Fraud investigations, Lerner said, are built by experienced investigators using whistleblower information, audits, referrals and sophisticated analysis of billing data. "Iowa should invest in the people and tools that actually do that work," he said.

Techau and Lerner also questioned the "political" nature of the new task force, noting that Bird, whose office doesn't handle Iowa's Medicaid fraud investigations, heads the panel, while Auditor of State Rob Sand, a Democrat now running for governor, was not given a seat on the task force.

YOU MAKE OUR WORK POSSIBLE.SUPPORT

Older

OPINION: Healthcare costs are surging. Taxing billionaires will help Californians keep their coverage

Newer

Here are the corporate PACs fueling Tennessee’s race for governor

Advisor News

  • House panel advances CLEAR Forms Act backed by IRI
  • Modifying life insurance based on evolving needs
  • Gen X faces ‘pension envy’ as they head into retirement
  • Your client wants to cash out an annuity. Here’s what to consider
  • How student loan debt impacts 401(k) balances
More Advisor News

Annuity News

  • A-Cap strikes back with lawsuit accusing SC regulators of sloppy process, leaking secrets
  • AM Best to Discuss Its Views on Private Credit Surge and Risks at 2026 NAIC/NIPR Insurance Summit
  • OID recovers $260M in life insurance benefits
  • NUNN BILLS TO COMBAT PAYMENT SCAMS, CUT FINANCIAL RED TAPE PASS FINANCIAL SERVICES COMMITTEE
  • SS&C Black Diamond Expands Annuities & Insurance Marketplace with New Insurance Capabilities and Carriers
More Annuity News

Health/Employee Benefits News

  • JEFF STONE: Trust In The Medical Industry
  • The Rising Cost of Healthcare, Explained
  • Health insurance premiums set to spike
  • Health insurance premiums set for biggest jump in 24 years
  • SHIIP counseling available this fall at KRHC
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Insurance Life Is Uncertain Get Life Insurance
  • Judge OKs class action against State Farm over PHL life insurance policies
  • AM Best Assigns Credit Ratings to Lasso Healthcare Insurance Company
  • A-Cap insurers face new takeover push in South Carolina
  • AM Best Affirms Credit Ratings and Assigns National Scale Rating to Allianz Ayudhya General Insurance Public Company Limited
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.