Minneslate Logo

HF2354 (Legislative Session 94 (2025-2026))

Medicaid fraud provisions added and modified, attorney general provided subpoena and enforcement authority, criminal penalties provided, conforming changes made, and money appropriated.

Related bill: SF2689

AI Generated Summary

Purpose of the Bill

The proposed legislative act aims to enhance consumer protection by addressing Medicaid fraud. It introduces specific legal amendments empowering the attorney general with greater authority for investigations and enforces stricter penalties for fraudulent activities related to medical assistance funds.

Main Provisions

  • Subpoena and Enforcement Authority: The bill grants the attorney general, or authorized representatives, authority to subpoena various records, including financial and communication records. This change is meant to aid in the investigation of suspected Medicaid fraud, ensuring these records are relevant to an ongoing investigation.

  • Legal Representation and Prosecution: The attorney general, along with county attorneys, is tasked with prosecuting Medicaid fraud cases or reclaiming wrongfully made payments.

  • Medical Assistance Fraud Definitions and Penalties: The bill defines actions that constitute medical assistance fraud, such as presenting false claims for reimbursement, cost reports, or rate applications. It outlines penalties based on the value of false claims, including imprisonment which can range up to 20 years and fines up to $100,000.

  • Aggregation and Venue: Allows aggregation of fraudulent claims over a six-month period for prosecution and sets guidelines for determining the appropriate jurisdiction for such prosecutions.

  • Statute of Limitations: The bill amends the timeframe within which indictments for Medicaid fraud must be filed, setting a six-year limit for many offenses.

  • Appropriations: Allocates $390,750 annually from 2026 to 2029 to support the attorney general’s efforts in combating Medicaid fraud.

Significant Changes

  • Repeal of Previous Statute: The bill repeals a prior statute (section 609.466) related to medical assistance fraud, replacing it with more precise definitions and stringent penalties.

  • Expanded Investigative Powers: Empowers the attorney general to access additional types of records to facilitate investigations into Medicaid fraud.

  • Longer Penalties and Larger Fines: Introduces higher penalties for fraud that involves larger sums of money or repeat offenses, reflecting a tougher stance against fraudulent misuse of Medicaid funds.

Relevant Terms

  • Medicaid fraud
  • Attorney general
  • Subpoena power
  • Investigation
  • Legal representation
  • Offense aggregation
  • Venue jurisdiction
  • Statute of limitations
  • Appropriation of funds
  • Criminal penalties

Bill text versions

Past committee meetings

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toPublic Safety Finance and Policy
March 16, 2025HouseFloorActionMotion to recall and re-refer, motion prevailedHuman Services Finance and Policy
March 19, 2025HouseFloorActionCommittee report, to adopt and re-refer toPublic Safety Finance and Policy
March 25, 2025HouseFloorActionCommittee report, to adopt as amended and re-refer toState Government Finance and Policy
March 26, 2025HouseFloorActionCommittee report, to adopt as amended and re-refer toJudiciary Finance and Civil Law

Citations

 
[
  {
    "analysis": {
      "added": [
        "Enhanced authority for the attorney general to acquire various business and financial records."
      ],
      "removed": [
        "No specific removals noted; the section primarily elaborates on existing powers."
      ],
      "summary": "This section grants the attorney general authority to issue subpoenas and obtain records relevant to investigations.",
      "modified": [
        "Clarifies the range of records accessible under subpoena in line with investigatory needs."
      ]
    },
    "citation": "8.16 subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Authority for both the attorney general and county attorney to initiate actions to recover wrongful payments."
      ],
      "removed": [
        "None"
      ],
      "summary": "Describes the legal representation for state and county agencies in matters related to Medicaid fraud and wrongful payments.",
      "modified": [
        "Language clarifying the prosecutorial powers of the attorney general in Medicaid fraud cases."
      ]
    },
    "citation": "256B.12"
  },
  {
    "analysis": {
      "added": [
        "Specifies different limitation periods for various types of offenses, including those related to Medicaid fraud."
      ],
      "removed": [
        "None"
      ],
      "summary": "Defines the limitations periods for finding and filing indictments or complaints for various offenses.",
      "modified": [
        "Updated to reflect limitation periods on Medicaid fraud among other offenses."
      ]
    },
    "citation": "628.26"
  }
]

Sponsors