Arnold Kubei, who runs two Woodbury home-care agencies, is pushing back hard after the Minnesota Department of Human Services moved to suspend the providers' participation in state programs. Kubei appealed state orders this week and says his teams kept serving clients even after payments were put on hold. He rejects any suggestion of fraud, calling the suspension a shock, and his appeal now sends the dispute into an administrative process that will determine whether corrective steps or further sanctions come next.
State says clients were at "imminent risk"
The state sent what a local station described as suspension letters to Woodbury companies Metro Care Human Services and Home Sweet Home Minnesota, saying persons served were at an "imminent risk of harm." As reported by KSTP, the notices say clients were not getting services in their service plans and were not receiving medications consistently. According to that reporting, those findings triggered the licensing actions and a pause in payments to the providers.
Correction orders list missed care and rights violations
Public correction orders posted by the Minnesota Department of Human Services lay out what DHS says it found after a Feb. 12 licensing review. The March 13 order for Metro Care Human Services cited failures to protect a person’s rights and to provide required hours of in-person support, and it ordered immediate corrective steps as documented by Minnesota DHS. A March 17 order for Home Sweet Home Minnesota lists similar violations, including missed medication assistance and multiple clients not receiving assigned hours between March and November 2025, and it sets timelines for fixes as detailed by Minnesota DHS.
Operator appeals and disputes allegations
Kubei has told reporters he has appealed the orders and denies any fraudulent conduct, saying his companies tried to cooperate with state investigators. In an interview, he said payments were halted in December and that his agencies had not been paid for more than 145 days as of April 30, a claim he made to KSTP. According to Kubei, staff continued supporting clients despite the financial strain, and he says he invited DHS to inspect operations directly.
How this fits into a wider program-integrity push
The actions against the Woodbury providers land in the middle of a broader statewide and federal crackdown on suspected fraud in high-risk Medicaid programs. Federal officials announced a pause of roughly $259 million in certain Medicaid reimbursements to Minnesota earlier this year as part of stepped-up audits and pre-payment reviews, a move covered by the Star Tribune that has increased pressure on both regulators and providers.
Legal next steps for the provider and families
Correction orders are issued under Minnesota law and require specific fixes within set timelines. Under Minnesota Statutes §245A.06 a provider may ask the commissioner to reconsider parts of a correction order, but that request does not pause the order's requirements. Failure to correct violations can lead to conditional licenses, fines, or other sanctions under state rules, and Kubei’s appeal will be decided through DHS’s licensing process while families and case managers wait for the department’s next move.
