HF 2354: Medical assistance fraud governing provisions added and modified, attorney general provided subpoena and enforcement authority, criminal penalties provided, conforming changes made, and money appropriated. - Minnesota

4th Engrossment → 5th Engrossment · 7 edits · May 17, 2026

MODERATE

This bill update primarily adds new sections to the legislation while removing several others, likely to reorganize the text or incorporate feedback from previous legislative sessions. The substantive policy content regarding medical assistance fraud remains largely consistent, with minor clarifications added to the Attorney General's subpoena authority and the list of crimes that trigger professional licensing disqualifications.

Scope change

The bill's scope regarding the specific crimes and regulations affected has not significantly changed; however, the internal structure of the bill has been altered by removing specific sections and adding new ones.

TECHNICAL

Multiple sections (e.g., 2.32, 3.34, 5.33, 6.32, 6.33, 10.33) were removed, indicating a reorganization or deletion of previously proposed provisions.

A large number of new sections (ranging from 11.19 through 19.26) were added, suggesting the bill was expanded or restructured to include new articles or detailed provisions.

ENFORCEMENT

The Attorney General's authority to subpoena records was clarified to explicitly include 'wage and employment records' and 'insurance records' specifically related to investigations under section 256B.12.

REQUIREMENT

The list of crimes that lead to a 15-year disqualification from certain professions was updated to include specific references to medical assistance fraud (sections 609.466 and 609.467) alongside other serious offenses.

The list of crimes leading to 10-year and 7-year disqualifications was similarly updated to include medical assistance fraud, ensuring consistency across different disqualification periods.

DEFINITION

The definition of 'Fraud involving state funded or administered programs or services' was updated to explicitly list sections 609.466 and 609.467 as included offenses.

TIMELINE

The posting date of the bill was updated from May 6, 2026, to May 17, 2026, reflecting the progression to the 5th Engrossment version.

3rd Engrossment → 4th Engrossment · 5 edits · May 6, 2026

MODERATE

The bill was updated from the 3rd to the 4th engrossment, reflecting final legislative changes including a revised effective date. Key substantive updates include expanding the Attorney General's subpoena authority to include insurance claim records, clarifying the types of records subject to investigation, and updating the definition of 'medical assistance funds' to 'medical assistance money' in fraud statutes. The appropriation section was also modified to specify funding levels for fiscal years 2028 and 2029.

Scope change

The scope of the Attorney General's investigative authority was broadened to explicitly include insurance records related to claim settlements, and the bill's applicability was updated to reflect changes in the ordering of referenced chapters (245A and 256B).

ENFORCEMENT

Expanded the Attorney General's subpoena authority to explicitly include insurance records related to claim settlements, allowing for broader investigation into potential fraud.

DEFINITION

Changed the term 'medical assistance funds' to 'medical assistance money' in several fraud-related provisions to ensure consistent terminology.

REQUIREMENT

Updated specific fraud definitions to clarify that claims for personal care assistance must meet required conditions such as service authorization and supervision, and swapped the order of referenced chapters from 256B/245A to 245A/256B.

FISCAL

Added specific funding details for the appropriation, establishing a $0 base for the general fund starting in fiscal year 2028 and setting a $1,230,000 base for the special revenue fund for fiscal years 2028 and 2029.

TIMELINE

Updated the posting date of the bill from April 8, 2026, to May 6, 2026, indicating the progression of the legislative process.

2nd Engrossment → 3rd Engrossment · 4 edits · Mar 5, 2026

MODERATE

The bill was updated from the 2nd to the 3rd engrossment, shifting the effective date from August 1, 2025, to August 1, 2026, likely to align with the upcoming legislative session. The text was also updated to reference the 2025 Supplement for Minnesota Statutes, indicating that the law is being codified in a newer statutory compilation. Additionally, the bill's title was slightly adjusted to use the term 'medical assistance fraud' instead of 'Medicaid fraud' for consistency with state terminology.

Scope change

The bill's scope remains focused on consumer protection and medical assistance fraud, but the specific statutes it amends have been updated to reflect the 2025 Supplement, and the effective date has been pushed back by one year.

TIMELINE

The effective date for the new fraud provisions was changed from August 1, 2025, to August 1, 2026.

TECHNICAL

References to Minnesota Statutes were updated from the 2024 version to the 2025 Supplement to ensure the law is codified in the current statutory record.

The bill title was updated to replace 'Medicaid fraud' with 'medical assistance fraud' to align with official state terminology.

The document version was updated from '2nd Engrossment' to '3rd Engrossment', reflecting the bill's progression through the legislative process.

1st Engrossment → 2nd Engrossment · 5 edits · Mar 27, 2025

MODERATE

The bill was updated from its first to second engrossment, primarily to reflect new legislative numbering and a revised effective date of August 1, 2025. The core policy changes involve expanding the definition of theft to include specific Medicaid and employee benefit fraud, increasing funding for the attorney general's fraud unit, and repealing the previous standalone fraud statute.

Scope change

The bill's scope expanded to explicitly include fraud involving employee treatment and supplies under section 176.135, in addition to existing Medicaid fraud provisions.

TIMELINE

The effective date for the new theft provisions was changed to August 1, 2025, and crimes must occur on or after that date.

SCOPE

New theft clauses were added to cover false claims for reimbursement for employee medical treatment and supplies that were medically unnecessary, inappropriate, or excessive.

FISCAL

Funding for the attorney general's medical assistance fraud unit was increased to $390,750 for fiscal years 2026 and 2027, with a base of $390,750 for 2028 and 2029.

ENFORCEMENT

The previous standalone statute (Minnesota Statutes 2024, section 609.466) was repealed and its content was integrated into the general theft statute.

TECHNICAL

The bill's title and section numbering were updated to reflect the second engrossment version.

Introduction → 1st Engrossment · 4 edits · Mar 26, 2025

MODERATE

This bill updates the penalties for medical assistance fraud by introducing a new middle-tier offense for false claims between $5,000 and $35,000, which carries up to ten years in prison and a $20,000 fine. It also clarifies that a person's intent to defraud is established if they knowingly submit a false claim, even if they did not personally create it. Additionally, the bill expands venue options to allow prosecution in the county where the entity receiving the claim is located, not just where the fraud occurred.

Scope change

The scope of criminal liability was broadened to include participants in the preparation of false claims and to allow for the aggregation of smaller claims over a six-month period to reach higher sentencing tiers.

REQUIREMENT

The definition of the crime now includes intentionally participating in the preparation of a false claim, removing the previous requirement that the actor must personally present or submit the claim.

A new sentencing tier was added for false claims valued between $5,000 and $35,000, punishable by up to ten years in prison and a $20,000 fine.

The law now allows prosecutors to aggregate multiple small false claims submitted within a six-month period to determine the appropriate sentencing tier.

ENFORCEMENT

Venue rules were expanded to allow prosecution in the county where the entity receiving the claim is located, in addition to the county where the offense occurred.

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

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