The fight over how to prevent fraud in Minnesota hit a snag last week. Committee work on a bill adding more investigation and prosecution of fraudsters in the state hit an impasse Thursday that left only a year of funding for increased staffing for the state’s Medicaid fraud investigation unit.
Republicans blocked a measure that would have gave the Attorney General's fraud prevention team more money.
Those in favor say they want to hire more investigators to help address the growing number of referrals which tripled last year.
"I believe firmly that investigation and prosecution is accountability, but it's also prevention," Attorney General Keith Ellison said.
Ellison spoke before a House committee, explaining why they should support a bill that would add more money toward the Medicaid Fraud Control Unit.
"To just let others know that we will hold them accountable if they steal public funds intended for our most vulnerable members," Ellison added.
He says his office needs to hire more investigators to help address the growing number of referrals which tripled last year.
The debated legislation would allocate $1.23 million in Fiscal Year 2027 to the attorney general’s Medicaid fraud investigation unit. These funds would primarily go toward hiring 18 new positions: 11 investigators, three attorneys and four support staff.
Minnesota’s fraud investigation unit staffing is largely lower than that of comparable size states like Virginia, Washington and Arizona, Rep. Matt Norris (DFL-Blaine) said last week. The proposal would set the state at a standard staffing level, but to stay there, funding has to extend beyond a year.Rep.
Steve Gander (R-East Grand Forks) felt “favorable” toward Norris’ amendment but wouldn’t vote for it because he’s heard from constituents who don’t trust the Attorney General’s Office.
“Because we’re in a representative democracy, and hearing this feedback from my constituents, I’m going to have to lean no on this," Gander explained.
