Using housing and cash, ‘the program’ exploits Colorado’s homeless for Medicaid millions

A Denver Gazette investigation uncovered a controversial program in Colorado’s Aurora area that provides free housing and cash payments to homeless individuals, while requiring them to enroll in Medicaid and obtain prescribed medications. Since 2022, On Going Home Health Care has received nearly $24 million in Medicaid payments for services rendered to participants, with weekly reimbursements ranging from $900 to over $1,500 per person. Participants reported receiving $50 in weekly "donations," initially in cash, later via digital payments or gift cards, and up to $500 for recruiting others into the program. The program operates through rent-free homes in suburban neighborhoods, though some participants received benefits outside traditional housing, including McDonald’s, coffee shops, and motel rooms. Interviews with over a dozen participants revealed that many joined solely for the financial incentives, with some admitting they had no prior medical needs. The required "home health" services reportedly involved minimal care, such as basic vitals and pill distribution, leading critics to question the legitimacy of the services provided. State officials confirmed investigations into the program after the newspaper’s findings, citing potential violations of federal Medicaid laws that prohibit inducements influencing provider choices. A congressional committee in March also flagged Colorado’s Medicaid program as vulnerable to fraud, referencing similar cases in Minnesota involving falsified records. Experts consulted by the Gazette raised concerns about the program’s compliance with regulations, describing it as exploitative if participants felt pressured or misled. Owners of On Going Home Health Care declined to comment, with one associate dismissing the investigation’s claims by asking, 'So, what’s the problem?' Participants described threats of being returned to homelessness if they disclosed details about the program to anyone outside potential recruits. The investigation highlights broader questions about accountability in Medicaid funding and the ethical treatment of vulnerable populations.