By Phillip C. Parrish, Candidate for Governor of Minnesota 2026
At the recent Duluth Republican Women’s meeting, I had the privilege of speaking with many dedicated Minnesotans, including Nancy, a senior citizen living in assisted living who raised a vital question: How are we going to fund and take care of our elderly? Nancy’s concern resonates deeply with me, as it does with countless families across our state. Our seniors have worked hard, paid into the system, and deserve the security and dignity they’ve earned. The good news is that we don’t need to raise taxes or burden hardworking families to meet these needs. Instead, we can more than cover the legitimate costs of elderly care by cracking down on rampant fraud in healthcare and benefits programs, preventing identity theft that siphons billions from our systems, and ending Minnesota’s state tax on Social Security benefits. This approach will redirect wasted dollars back to where they belong—supporting our actual citizens who depend on these promises.
Let me break this down with real numbers and a clear action plan. Minnesota’s elderly population is growing, with over 1 million residents aged 65 and older relying on programs like Medicare, Medicaid, and Social Security for healthcare, assisted living, and daily support. The state faces funding gaps in elderly care, estimated at $1-2 billion annually, including costs for assisted living (averaging $5,000-$6,000 per month per resident) and long-term services that could widen without intervention. But these gaps aren’t due to a lack of resources—they stem from waste, fraud, and abuse that drain our systems. Nationally, Medicare loses an estimated $50-68.7 billion annually to fraud and improper payments, while Medicaid sees about 5.09% of its outlays—roughly $40 billion yearly—go to improper claims. Social Security adds another layer, with improper payments totaling around $70 billion per year, much of it tied to overpayments and identity theft. Government-wide fraud, including identity theft in benefits programs, costs $233-521 billion annually.
Here in Minnesota, these issues hit close to home. Our state’s Medicaid program spends about $18.5 billion annually, with improper payments potentially amounting to $925 million (at the national 5% rate). Medicare serves roughly 1 million Minnesotans, with annual spending around $12-13 billion; even a conservative 3-5% fraud rate means $360-650 million lost each year. Social Security pays out approximately $19-20 billion to about 1 million beneficiaries in our state, where reclaiming just 1% of improper payments could yield $190-200 million in savings. Identity theft exacerbates this, as seen in the recent $10.6 billion national Medicare scam that victimized Minnesotans by stealing personal data to file fake claims. Proportional to our population (about 1.7% of the U.S.), Minnesota’s share of these national losses could total $2.5-8.8 billion yearly across these programs—far exceeding our elderly care gaps.
By stopping this fraud and waste, we can generate hundreds of millions in savings for Minnesota alone, enough to fully fund expanded assisted living subsidies, in-home care, senior nutrition programs, and other supports without touching taxpayer pockets. Additionally, ending Minnesota’s state tax on Social Security benefits would put more money directly back into seniors’ hands. Currently, our state taxes these benefits for individuals with adjusted gross incomes over $82,190 or married couples over $105,380, phasing out exemptions based on income. This tax pulls in about $300-400 million annually from retirees, money that could instead cover rising costs like assisted living or healthcare deductibles. Eliminating it entirely would provide immediate relief to over half a million senior households, boosting their financial security without costing the state a dime in new revenue—since fraud recoveries will more than offset it.
My action plan as Governor is straightforward, actionable, and focused on results:
1. Launch a Statewide Anti-Fraud Task Force: Within my first 100 days, I’ll establish a dedicated task force partnering with federal agencies like the DOJ and HHS, using advanced AI and data analytics to detect and prevent fraud in real-time. This builds on successes like the 2025 National Health Care Fraud Takedown, which recovered billions nationwide. We’ll prioritize auditing Medicaid and Medicare providers, targeting schemes like overbilling for assisted living services or unnecessary medical equipment claims.
2. Strengthen Identity Theft Protections: I’ll direct the Minnesota Department of Human Services to implement blockchain-based verification systems and mandatory two-factor authentication for benefits enrollment, reducing identity theft vulnerabilities that affected over 1 million Americans in recent scams. This will include free credit monitoring for seniors and collaboration with law enforcement to prosecute transnational criminals exploiting our systems.
3. Recover and Redirect Funds: We’ll conduct annual audits of all elderly care programs, recovering improper payments—estimated at $1-2 billion statewide—and redirect them directly to underfunded areas like the Elderly Waiver program and assisted living subsidies. This could add $500 million or more annually to senior services, covering gaps highlighted in recent legislative reports.
4. Legislate to End Social Security Taxation: I’ll work with the legislature to pass a bill fully exempting Social Security benefits from state income taxes, effective immediately upon passage. This will be revenue-neutral, funded by fraud savings, and modeled after states that have successfully eliminated such taxes without fiscal harm.
5. Invest in Prevention and Oversight: Allocate a small portion of recovered funds—say, 5%—to hire more investigators and upgrade technology, ensuring long-term sustainability. We’ll also expand senior education programs to help them spot and report fraud, empowering our elderly to protect themselves.
This isn’t just talk—it’s a proven path forward. States and the federal government have already recovered billions through similar enforcement, and Minnesota can lead the way. To Nancy and all our seniors: Under my leadership, we’ll honor the promises made to you by stopping the thieves, ending unfair taxes, and ensuring every dollar goes to those who truly need it. Together, we’ll build a stronger, more secure Minnesota for generations to come.
For more on my campaign and vision, visit parrish4mn.com or join us at upcoming events. Let’s make Minnesota work for its people again.
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