Legislative Auditor: 'Troubling dysfunction' led to $29 million in DHS overpayments

Capitol building in St. Paul
Photo credit Entercom

A report released Tuesday from the State Office of the Legislative Auditor sharply criticizes "troubling dysfunction" at the Department of Human Services.

$29 million in overpayments were made to two tribes, the White Earth Nation and Leech Lake Band of Ojibwe, over a decade for opioid abuse treatments. The 25-page report says no one the office interviewed took responsibility or offered a "credible rationale for paying health care providers for their clients taking medications at home." It says some employees could have stopped the payments but did not, but it did not find fraud or theft.

In a statement, DHS commissioner Jodi Harstead said: “The guidance that was given to tribal governments was wrong and it is impossible for us to serve Minnesotans in a trustworthy way if they believe that their interactions with DHS could leave them on the hook for tens of millions of dollars." The Legislative Audit Commission is convening at 2 p.m. Tuesday to discuss the report. Wednesday morning, Commissioner Harpstead and Legislative Auditor Jim Nobles are testifying in front of the Health and Human Services Committee.