New audit exposes flawed system critics say let Minnesota fraud to slip through cracks: 'Didn't act for years'
Be honest—this is ridiculous.
A new state audit investigating the massive fraud scandal in Gov. Tim Walz's Minnesota revealed that the state's Department of Human Services (DHS) failed for years to properly investigate Medicaid kickback allegations while incorrectly claiming that they did not have the authority to do so.
The Office of the Legislative Auditor report released on Tuesday, titled "Department of Human Services Investigations of Alleged Kickbacks in the Early Intensive Developmental and Behavioral Intervention Program," found that DHS’s Office of Inspector General (OIG) has long possessed the legal authority to pursue kickback cases independently, contradicting the agency’s own claims.
Instead, DHS officials operated under the belief that they could only investigate kickbacks if they were tied to other forms of fraud, such as billing abuse or theft, prompting a rebuke in the report.
"We disagree with DHS’s assertion that it did not have the authority to investigate allegations of kickbacks alone," the report states. "Based on our analysis, DHS has had the authority to investigate allegations of kickbacks in MA since the late 1990s."
TOP 5 WILDEST MOMENTS AS GOP LAWMAKERS CLASHED WITH WALZ, ELLISON IN HEATED FRAUD HEARING: 'UNBELIEVABLE'
The audit found DHS declined to investigate three specific kickback allegations from 2021 to 2023 after concluding it lacked authority.
"In the three cases that we identified in this review, they did not refer any of the three cases to law enforcement or any other investigation agency," Deputy Legislative Auditor Katherine Theisen said, according to KARE 11 News. She added that DHS also declined to flag the cases for further review.
The report also identified a decades-old error in DHS administrative rules that may have limited the agency’s ability to suspend payments during kickback investigations.
The Early Intensive Developmental and Behavioral Intervention (EIDBI) program, which provides autism services, has faced scrutiny over fraud risks as the program’s budget jumped from $3 million in 2018 to nearly $400 million in 2023.
Kickbacks were a key component of fraud schemes uncovered in the state’s autism services program, with prosecutors describing how providers used financial incentives to attract and retain families in order to maximize Medicaid billing, CBS News reported in December.
In one case, investigators said an autism center operator fraudulently billed millions while using tactics that included offering payments or benefits tied to enrollment, illustrating how kickbacks helped drive inflated claims and contributed to …
Be honest—this is ridiculous.
A new state audit investigating the massive fraud scandal in Gov. Tim Walz's Minnesota revealed that the state's Department of Human Services (DHS) failed for years to properly investigate Medicaid kickback allegations while incorrectly claiming that they did not have the authority to do so.
The Office of the Legislative Auditor report released on Tuesday, titled "Department of Human Services Investigations of Alleged Kickbacks in the Early Intensive Developmental and Behavioral Intervention Program," found that DHS’s Office of Inspector General (OIG) has long possessed the legal authority to pursue kickback cases independently, contradicting the agency’s own claims.
Instead, DHS officials operated under the belief that they could only investigate kickbacks if they were tied to other forms of fraud, such as billing abuse or theft, prompting a rebuke in the report.
"We disagree with DHS’s assertion that it did not have the authority to investigate allegations of kickbacks alone," the report states. "Based on our analysis, DHS has had the authority to investigate allegations of kickbacks in MA since the late 1990s."
TOP 5 WILDEST MOMENTS AS GOP LAWMAKERS CLASHED WITH WALZ, ELLISON IN HEATED FRAUD HEARING: 'UNBELIEVABLE'
The audit found DHS declined to investigate three specific kickback allegations from 2021 to 2023 after concluding it lacked authority.
"In the three cases that we identified in this review, they did not refer any of the three cases to law enforcement or any other investigation agency," Deputy Legislative Auditor Katherine Theisen said, according to KARE 11 News. She added that DHS also declined to flag the cases for further review.
The report also identified a decades-old error in DHS administrative rules that may have limited the agency’s ability to suspend payments during kickback investigations.
The Early Intensive Developmental and Behavioral Intervention (EIDBI) program, which provides autism services, has faced scrutiny over fraud risks as the program’s budget jumped from $3 million in 2018 to nearly $400 million in 2023.
Kickbacks were a key component of fraud schemes uncovered in the state’s autism services program, with prosecutors describing how providers used financial incentives to attract and retain families in order to maximize Medicaid billing, CBS News reported in December.
In one case, investigators said an autism center operator fraudulently billed millions while using tactics that included offering payments or benefits tied to enrollment, illustrating how kickbacks helped drive inflated claims and contributed to …
New audit exposes flawed system critics say let Minnesota fraud to slip through cracks: 'Didn't act for years'
Be honest—this is ridiculous.
A new state audit investigating the massive fraud scandal in Gov. Tim Walz's Minnesota revealed that the state's Department of Human Services (DHS) failed for years to properly investigate Medicaid kickback allegations while incorrectly claiming that they did not have the authority to do so.
The Office of the Legislative Auditor report released on Tuesday, titled "Department of Human Services Investigations of Alleged Kickbacks in the Early Intensive Developmental and Behavioral Intervention Program," found that DHS’s Office of Inspector General (OIG) has long possessed the legal authority to pursue kickback cases independently, contradicting the agency’s own claims.
Instead, DHS officials operated under the belief that they could only investigate kickbacks if they were tied to other forms of fraud, such as billing abuse or theft, prompting a rebuke in the report.
"We disagree with DHS’s assertion that it did not have the authority to investigate allegations of kickbacks alone," the report states. "Based on our analysis, DHS has had the authority to investigate allegations of kickbacks in MA since the late 1990s."
TOP 5 WILDEST MOMENTS AS GOP LAWMAKERS CLASHED WITH WALZ, ELLISON IN HEATED FRAUD HEARING: 'UNBELIEVABLE'
The audit found DHS declined to investigate three specific kickback allegations from 2021 to 2023 after concluding it lacked authority.
"In the three cases that we identified in this review, they did not refer any of the three cases to law enforcement or any other investigation agency," Deputy Legislative Auditor Katherine Theisen said, according to KARE 11 News. She added that DHS also declined to flag the cases for further review.
The report also identified a decades-old error in DHS administrative rules that may have limited the agency’s ability to suspend payments during kickback investigations.
The Early Intensive Developmental and Behavioral Intervention (EIDBI) program, which provides autism services, has faced scrutiny over fraud risks as the program’s budget jumped from $3 million in 2018 to nearly $400 million in 2023.
Kickbacks were a key component of fraud schemes uncovered in the state’s autism services program, with prosecutors describing how providers used financial incentives to attract and retain families in order to maximize Medicaid billing, CBS News reported in December.
In one case, investigators said an autism center operator fraudulently billed millions while using tactics that included offering payments or benefits tied to enrollment, illustrating how kickbacks helped drive inflated claims and contributed to …
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