On Wednesday, Minnesota Attorney General Keith Ellison, along with DFL Senator Ann Johnson Stewart, and DFL Representative Matt Norris announced a plan to to stop Medicaid fraud.
Ellison and the DFL lawmakers introduced plans to triple the number of state fraud investigators as federal officials threaten to pull billions in healthcare funding.
"We're looking for 18 new staff and that sounds like a lot, but Minnesota only needs to pay for about four of those, about a quarter of that of that number," Ellison explained. "This is truly buy one and get three for free."
The proposed bill expands the size of Medicaid Fraud Control Unit (MFCU). The Federal government pays 75% of MFCU's expenses in that program accounting for Ellison's comments on free staffing.
The attorney general says this legislative push seeks to close loopholes by aligning fraud penalties with other theft laws and adding Medicaid crimes to the state’s racketeering statutes.
"Our bill creates new penalties for Medicaid fraud over $100,000 and over a million dollars," says Ellison. "Right now, Medicaid fraud is attractive for scammers because the current penalties for stealing from a private entity are far higher than stealing from the government, and we're fixing that."
Lawmakers will now work to move the bipartisan act through committee to determine if the expansion will be signed into law.
“Like so many Minnesotans, I’m furious that fraudsters have been stealing from our public programs that are meant to help those in need,” said Rep. Norris. “I’m proud to be working on the MAP Act once again this session to provide more tools for investigating fraud and strengthen penalties for those who are guilty.”
Their proposal includes:
Adding 18 new staff members to the Attorney General’s Office’s Medicaid Fraud Control Unit (MFCU) to account for an almost tripling of the numbers of fraud referrals the MFCU has received. The bill will increase the MFCU’s staff from 32 to 50 people.
With those funds, the MFCU would add 11 investigators, 3 attorneys, and 4 support staff to the unit.
Strengthening state Medical Assistance fraud laws by: Expanding fraud statutes to cover the breadth of fraud schemes investigators uncover; creates enhanced sentencing for high-dollar fraud cases; adding Medical Assistance fraud to Minnesota's racketeering statute, making it easier to take down larger conspiracies; expanding the statute of limitations; and increasing the state’s ability to recover tax dollars lost to fraud.