1.1 A bill for an act
1.2 relating to human services; requiring background checks for medical assistance
1.3 vendors; establishing a fraud detection system for the Department of Human
1.4 Services and the Department of Children, Youth, and Families; requiring reports;
1.5 amending Minnesota Statutes 2024, sections 245C.03, by adding a subdivision;
1.6 256.983, by adding a subdivision.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 245C.03, is amended by adding a subdivision
1.9to read:
1.10 Subd. 16.Medical assistance vendors.(a) The commissioner shall conduct background
1.11studies of all controlling individuals and managerial officials, as defined in section 245A.02,
1.12for vendors that receive reimbursement through the medical assistance program not otherwise
1.13covered under this section.
1.14 (b) The vendor must comply with all requirements for entities initiating background
1.15studies under this chapter.
1.16 (c) In order to be eligible for medical assistance payments, a vendor must demonstrate
1.17that all individuals who are required to have a background study according to paragraph (a)
1.18have a notice stating that:
1.19 (1) the individual is not disqualified under section 245C.14; or
1.20 (2) the individual is disqualified and the individual has been issued a set-aside of the
1.21disqualification for the setting under section 245C.22.
1Section 1.
25-02727 as introduced01/31/25 REVISOR DTT/ES
SENATE
STATE OF MINNESOTA
S.F. No. 1648NINETY-FOURTH SESSION
(SENATE AUTHORS: GRUENHAGEN, Utke and Hoffman)
OFFICIAL STATUSD-PGDATE
Introduction and first reading02/20/2025
Referred to Health and Human Services 2.1 Sec. 2. Minnesota Statutes 2024, section 256.983, is amended by adding a subdivision to
2.2read:
2.3 Subd. 6.Fraud detection system.(a) The commissioners of human services and children,
2.4youth, and families shall establish an automated or semiautomated fraud detection system
2.5that is capable of reviewing all vendor payments and requests for payments for suspicious,
2.6unusual, and potentially fraudulent activity. Fraud investigators must review any payments
2.7or requests for payments that the system in this subdivision indicates as suspicious, unusual,
2.8or potentially fraudulent.
2.9 (b) At least once every ... years, the commissioners of human services and children,
2.10youth, and families must analyze its fraud detection system using earned value management
2.11analysis to measure the efficiency and effectiveness of the system. During the regular
2.12legislative session following the conclusion of each analysis under this paragraph, the
2.13commissioners must report their findings to the chairs and ranking minority members of
2.14the legislative committees with jurisdiction over human services.
2Sec. 2.
25-02727 as introduced01/31/25 REVISOR DTT/ES