Let me get this straight:

The State of Minnesota Dept of Human Services divides $3 billion among any health insurance companies that want to fund Medicaid services.

The Commerce Dept does not regulate them because they don't provide insurance as defined by law.

The Health Dept collects no financial data.

There are no applicable accounting standards for the money.

There is no audit authority and no audit standards.

The health insurance companies are apparently making a lot of money on Medicaid, more than they make on other commecial products. (Where did those numbers come from?)

The Feds via the GAO cite this as a dangerous situation.

The industry blocks any/all regulation.

Okay, what part of this isn't a recipe for scandal?