Evicted and Homeless: Minnesota Medicaid Fraud Crisis Leaves Vulnerable Residents on the Streets

Left: Screenshot of the LinkedIn profile of Jama Mohamod alongside the Maple Grove headquarters of American Home Healthcare LLC, a high-end home featuring an indoor basketball court. State records list Jama Mohamod as the owner of American Home Health Care. Top right: Janelle “Sky” Hanson, an autistic woman who has spent eight months living in cars and tents after being caught in an alleged Medicaid fraud scheme. Bottom right: Kane Pence, a neighbor who exposed the alleged fraud, displays photographic evidence showing he was out of state on days a provider claimed to have delivered eight hours of service. courtesy of Kare 11

MINNEAPOLIS — A devastating Medicaid fraud crisis in Minnesota is leaving some of the state's most vulnerable citizens homeless, as a KARE 11 investigation reveals how a system designed for care was allegedly exploited for profit. Among the victims is Janelle "Sky" Hanson, a young woman with autism who was evicted from her Minnetonka apartment despite paying her rent.

The Human Cost of "Handicap Inc."

Sky's journey from a stable home to living in cars and tents began in June 2025, when sheriff's deputies arrived at her door with an eviction notice addressed to "Jane or John Doe". Sky had been living in a high-end apartment through a Medicaid program called Integrated Community Supports (ICS), which is intended to help adults with disabilities live independently with daily assistance.

Sky subleased her unit from her care provider, American Home Healthcare LLC, which held the master lease with the apartment complex. While Sky consistently paid her share of the rent to the company, American Home Healthcare reportedly failed to pay the complex, leading to the eviction of its disabled clients.

Millions in Public Funds for "Very Little" Service

The investigation, dubbed "Housing Hustle," uncovered evidence that American Home Healthcare was being paid massive sums of public money while providing minimal care. Kane Pence, a neighbor of Sky in the same program, characterized the operation as a "complete and total scam," which he nicknamed "Handicap Inc.".

Medicaid records show that the company, owned by Jama Mohammad, was paid more than 2.2million in public dollars since2022. Pence discovered his Medicaid account was being billed $276 a day for nearly eight hours of service, even on days when he was documented as being out of the state or on retreats. For Sky, the company billed Medicaid $421 per day, claiming 12 hours of help, though she reported receiving only one or two hours on most days.

Illegal Kickbacks and Lavish Lifestyles

The fraud allegedly extended to an illegal "kickback" scheme. According to testimony provided at a House fraud hearing, the company would offer recipients a rebate on their rent—a practice strictly prohibited under federal and state law—and then recoup those costs by overbilling Medicaid for services never rendered.

While its clients were being forced onto the streets, American Home Healthcare operated out of a high-end subdivision in Maple Grove. The company's headquarters, a large house featuring an indoor basketball court, was visited by investigators, but owner Jama Mohammad has not responded to requests for comment.

A Viral Cry for Help

The Minnesota Department of Human Services finally cut off funding to the company in September 2025, the same day Pence testified about the fraud at the State Capitol. However, the damage for residents like Sky has been lasting; she has spent the last eight months cycling through cars, tents, and shelters when she can afford them.

Sky's story has since gone viral, garnering millions of views and sparking a nationwide outpouring of support. While she currently spends time in the Hennepin County Law Library trying to clear the eviction from her record, efforts are now underway to secure the permanent supportive housing she needs.