Duluth Therapist Charged in Alleged $2.25M Medicaid Fraud After 27,430 Claims Examined

Peter Jason Meilahn, a psychotherapist from Duluth, Minnesota, has been charged with multiple felonies after state investigators say he received more than $2.25 million in Medicaid payments for psychotherapy services that were allegedly not provided.

Allegations

The Minnesota Attorney General's Office says health insurer UCare referred Meilahn to the state Medicaid Fraud Control Unit. According to the criminal complaint, Meilahn operated a practice called Individual Services and also worked as a non-employee contractor for Franklin Family Services.

The criminal complaint says investigators identified 27,430 claims for psychotherapy services that were not provided and alleges Meilahn obtained more than $2.25 million through the charged conduct. Source: Minnesota District Court / Minnesota Attorney General's Office.

Investigative Findings

Investigators reviewed claims and identified 27,430 instances in which psychotherapy services were allegedly billed but not provided. UCare initially audited nearly 2,000 psychotherapy claims submitted between January and August 2023 and reported that roughly 99% of those claims—when converted from the units billed—indicated more than 24 hours of psychotherapy for a single date of service. The Medicaid Fraud Control Unit expanded the review and found 468 separate days on which claimed treatment exceeded 24 hours in a single day.

Victims and Documentation Gaps

Investigators found claims tied to 117 Medicaid recipients that lacked required supporting documentation. Fifteen recipients were identified who reportedly never had a single session with Meilahn, and eight recipients said they did not provide him with their insurance information. The complaint highlights several family examples: billing of more than $150,000 for seven children (no services alleged) and more than $127,000 billed for psychotherapy involving two children between 2019 and 2024 who, their mother said, never received services.

An Oct. 1 Ramsey County conditional-release order lists $1 million bail without the listed conditions or $100,000 with conditions that include supervision, surrender of Meilahn's passport and restrictions on leaving Minnesota and working in Medicaid or state programming. Source: Minnesota Judicial Branch.

Charges, Provider Status and Court Proceedings

Meilahn is charged with 13 felony counts: 11 counts of theft by false representation (for losses over $35,000 across charging periods from 2020–2026) and two identity-theft counts (including one involving eight or more victims). The Minnesota Department of Human Services (DHS) terminated Meilahn as a Medicaid provider on Jan. 3, 2026, after investigators say he failed to produce required documentation.

An Oct. 1 conditional-release order in Ramsey County lists two bail options: $1 million cash bail or bond without conditions, or $100,000 cash bail or bond subject to conditions including Level 2 supervision, surrender of passport, a waiver of extradition, remaining in Minnesota unless the court allows travel, and a prohibition on working in Medicaid or other state programs while conditions remain in effect. The arrest warrant was cleared Sept. 30, and Meilahn’s next hearing is scheduled for Oct. 9 at 9 a.m. in Ramsey County.

Other Notes

UCare reported that its Medical Assistance plans transitioned to Medica One Health Plan on Oct. 1, 2026. Former UCare Medicaid members can now use a Medica Member Account to review claims and benefits. Minnesota residents who suspect a provider billed Medicaid for services not provided are encouraged to contact the Minnesota Attorney General's Medicaid Fraud Control Unit.

Sources

Details are drawn from the Minnesota District Court, the Minnesota Attorney General's Office, and the Minnesota Judicial Branch as noted in the criminal complaint and court records.