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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

This bill aims to strengthen consumer protection measures by expanding the state's ability to combat Medicaid fraud. It provides the Minnesota Attorney General with greater authority to subpoena and enforce laws related to medical assistance fraud.

Key provisions of the bill include:

  1. Expanded Subpoena Power – The Attorney General is granted authority to subpoena records from various businesses, financial institutions, and service providers if relevant to an ongoing criminal investigation of Medicaid fraud.

  2. Legal Representation – The Attorney General or county attorneys may independently or jointly prosecute cases involving Medicaid fraud, recover wrongfully obtained payments, and take legal action against offenders.

  3. Medical Assistance Fraud Penalization – The bill establishes criminal penalties for individuals who submit fraudulent claims for Medicaid reimbursement, with penalties escalating based on the value of fraudulent claims:

    • Up to 20 years in prison and a $100,000 fine if the fraud exceeds $35,000.
    • Up to 10 years in prison and a $20,000 fine for fraud exceeding $5,000.
    • Up to 5 years in prison and a $10,000 fine for fraud under $5,000.
    • The bill allows for aggregation of fraudulent claims over a six-month period to determine sentencing severity.

  4. Statute of Limitations & Venue Provisions – Establishes that cases involving medical assistance fraud must be initiated within six years and allows prosecution in any county where part of the crime occurred or where fraudulent claims were processed.

  5. Appropriations for Enforcement – Allocates $390,750 per year from 2026 to 2029 to the Attorney General's office to support enforcement efforts against Medicaid fraud.

  6. Repeal of Existing Medical Assistance Fraud Law – The bill repeals Minnesota Statutes 2024, Section 609.466, replacing it with the more detailed new provisions under Section 609.467.

In summary, this bill enhances investigative and prosecutorial powers, introduces stricter penalties for Medicaid fraud, and ensures financial support for enforcement efforts.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toPublic Safety Finance and Policy
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
April 06, 2025HouseFloorActionCommittee report, to adopt and re-refer toHuman Services Finance and Policy
April 23, 2025HouseFloorActionAuthor added
April 23, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Expanded list of entities from which records can be subpoenaed."
      ],
      "removed": [],
      "summary": "This bill modifies the attorney general's authority to issue subpoenas and access records under section 8.16, subdivision 1.",
      "modified": [
        "Clarifications on types of records eligible for subpoena."
      ]
    },
    "citation": "8.16",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Clarification on roles of attorney general and county attorney."
      ],
      "removed": [],
      "summary": "This legislation modifies the legal representation requirements under section 256B.12.",
      "modified": [
        "Ability to prosecute under sections 609.466 and 609.467."
      ]
    },
    "citation": "256B.12",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill changes the statute of limitations for indictments under section 628.26.",
      "modified": [
        "Statute of limitations for various sections including 609.466 and 609.467 updated."
      ]
    },
    "citation": "628.26",
    "subdivision": ""
  }
]

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