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SF2689 (Legislative Session 94 (2025-2026))

Modifying provisions governing Medicaid fraud addition

Related bill: HF2354

AI Generated Summary

Purpose of the Bill

The bill aims to enhance consumer protection by strengthening regulations and enforcing stricter penalties for Medicaid fraud. It provides the Attorney General with expanded authority for investigations and outlines criminal penalties for fraudulent activities related to medical assistance claims.

Main Provisions

  • Enhanced Investigative Powers: The Attorney General, and those authorized by the Attorney General, are granted extended authority to issue subpoenas for a variety of records relevant to investigations. This includes records from phone companies, internet service providers, utility companies, transportation entities, and financial institutions.

  • Fraudulent Claims and Penalties: The bill defines medical assistance fraud as the intentional submission or preparation of false claims related to Medicaid payments. Penalties vary based on the amount of the fraudulent claim:

    • Up to 20 years imprisonment and/or a fine up to $100,000 for claims over $35,000.
    • Up to 10 years imprisonment and/or a fine up to $20,000 for claims between $5,000 and $35,000, or for repeat offenders.
    • Up to 5 years imprisonment and/or a fine up to $10,000 for claims under $5,000.

  • Venue and Aggregation: Fraudulent claims made within a six-month period can be aggregated to determine the severity of penalties. Offenses can be prosecuted in any county where parts of the fraud occurred or where the entity receiving the fraudulent claim is located.

Significant Changes to Existing Law

  • Subpoena Authority: Amends previous statutes to provide comprehensive subpoena power to the Attorney General for records beyond those previously enumerated, covering a wider range of service providers and business records.

  • Legal Representation: Clarifies the role of the Attorney General and county attorneys in prosecuting Medicaid fraud cases and recovering payments wrongfully made.

  • Repeal of Prior Statute: Repeals a specific statute from 2024, suggesting updates and possible consolidation or replacement with new provisions.

Relevant Terms

  • Medicaid fraud
  • Subpoena
  • Attorney General
  • Penalties
  • Fraudulent claims
  • Criminal prosecution
  • Consumer protection

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toJudiciary and Public Safety
March 19, 2025SenateFloorActionAuthor added
March 31, 2025SenateFloorActionAuthor added
April 01, 2025SenateFloorActionAuthor added
April 06, 2025SenateFloorActionComm report: To pass as amended and re-refer toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "Expanded list of entities whose records can be subpoenaed."
      ],
      "removed": [
        ""
      ],
      "summary": "This section grants the attorney general authority to subpoena certain records.",
      "modified": [
        "Subsection rephrased for clarity."
      ]
    },
    "citation": "8.16",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Clarification on roles of state and county attorneys."
      ],
      "removed": [
        ""
      ],
      "summary": "This section outlines the legal representation for the state and local agencies in relation to Medicaid fraud.",
      "modified": [
        "Adjustments to responsibilities for prosecuting fraud cases."
      ]
    },
    "citation": "256B.12",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This section deals with definitions related to theft, including theft by swindle.",
      "modified": [
        "Clarification on penalties and implications for theft related to medical assistance fraud."
      ]
    },
    "citation": "609.52",
    "subdivision": "subdivision 2"
  }
]

Sponsors