SF 2689: Medicaid fraud provisions modification; attorney general certain subpoena and enforcement authority provision - Minnesota

4th Engrossment → 5th Engrossment · 4 edits · Apr 28, 2026

MODERATE

The bill moved from its 4th to 5th engrossment version, incorporating several substantive updates including the addition of new sections for medical assistance fraud and the removal of a large block of sections previously dedicated to private data definitions. The text was also updated to reflect the new engrossment number and a later posting date.

Scope change

The bill's scope expanded by adding new sections (3 and 4) that establish legal representation rules and define medical assistance fraud, while the scope was reduced by removing the entire section dedicated to defining private data maintained by the Attorney General.

ENFORCEMENT

Added new sections to define medical assistance fraud and establish legal representation for the state in related cases.

DEFINITION

Removed the entire section that defined what constitutes private data held by the Office of the Attorney General.

TECHNICAL

Updated the document title and posting date to reflect the 5th engrossment version.

Re-numbered subsequent sections to accommodate the new and removed content.

3rd Engrossment → 4th Engrossment · 5 edits · Apr 23, 2026

MODERATE

The bill was updated from the 3rd to the 4th engrossment, primarily adding new sections to clarify data privacy rules for the Attorney General and expanding criminal penalties for medical assistance fraud. The most significant substantive change is the addition of a new statute (609.467) defining specific types of private data held by the Attorney General and establishing criminal penalties for fraud, while also adding new funding allocations to support these enforcement efforts.

Scope change

The bill's scope expanded to include a new definition of 'private data' for the Attorney General's office and a new criminal statute for medical assistance fraud, replacing the repealed section 609.466 with section 609.467.

DEFINITION

Added a new definition of 'private data' for the Attorney General, including disciplinary records, consumer complaints, and specific mortgage delinquency data.

ENFORCEMENT

Created a new criminal statute (609.467) for medical assistance fraud, expanding the list of criminal acts that trigger enhanced penalties.

FISCAL

Added $1,230,000 for the Attorney General to combat fraud and $85,000 for the Commissioner of Human Services to comply with documentation requests.

TIMELINE

Updated the bill title and posting date from April 22 to April 27, 2026.

TECHNICAL

Repealed the old medical assistance fraud statute (609.466) and replaced it with the new version (609.467).

2nd Engrossment → 3rd Engrossment · 7 edits · Apr 13, 2026

MODERATE

This bill updates the version of SF 2689 from the 2nd to the 3rd Engrossment, reflecting changes made during the legislative process. The most significant substantive change is the expansion of criminal penalties for Medicaid fraud, introducing a tiered sentencing structure based on the financial loss caused by the fraud. Additionally, the bill clarifies the attorney general's authority to subpoena records and updates the effective date of the new fraud provisions to August 1, 2026.

Scope change

The bill's scope was expanded to include new specific acts of fraud, such as failing to maintain required records and allowing qualified professional supervision to be bypassed, while also adjusting the statute of limitations for certain crimes.

TIMELINE

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

Statute of limitations rules were modified, extending the time to file charges for certain fraud violations and clarifying rules for continuing offenses.

ENFORCEMENT

The attorney general's subpoena authority was clarified to explicitly include wage and employment records and insurance records related to ongoing investigations.

REQUIREMENT

New criminal acts were added, including knowingly failing to maintain required medical and financial records and permitting others to operate entities while knowing they are prohibited from doing so.

Criminal penalties were restructured into a tiered system where the maximum prison sentence and fine increase based on the aggregate amount of financial loss caused by the fraud.

DEFINITION

The definition of 'criminal act' was updated to include specific new fraud-related offenses and to clarify that it applies to insurance companies and state agencies.

TECHNICAL

References to Minnesota Statutes were updated to reflect the 2025 Supplement instead of the 2024 version, and the repealer section was updated to reflect the 3rd Engrossment.

1st Engrossment → 2nd Engrossment · 3 edits · Apr 13, 2026

MINOR

The bill was updated from its first to second engrossment, reflecting a significant increase in funding for medical assistance fraud enforcement. The appropriation for the attorney general was raised from $390,750 per year to $1,230,000 for fiscal year 2027, and the repeal section was updated to reflect the new bill number.

Scope change

The scope of the bill's funding authority has expanded, directing more resources to the attorney general for combating medical assistance fraud.

FISCAL

The appropriation amount for the attorney general to combat medical assistance fraud was increased from $390,750 annually to $1,230,000 for fiscal year 2027.

TECHNICAL

The document title and header were updated to reflect the change from '1st Engrossment' to '2nd Engrossment' and the posting date was updated.

The appendix section referencing repealed statutes was updated to change the bill reference from S2689-1 to S2689-2.

Introduction → 1st Engrossment · 5 edits · Apr 7, 2025

MODERATE

This bill updates Minnesota's Medicaid fraud laws by renaming the offense to 'medical assistance fraud' and clarifying that intent to defraud includes knowingly participating in the preparation of false claims. It significantly increases criminal penalties, raising the maximum prison sentence to 20 years for claims over $35,000 and adding a new tier for repeat offenders. The bill also expands the definition of theft to explicitly include falsifying employee healthcare reimbursement claims and clarifies venue rules to allow prosecution in counties where the victim entity is located.

Scope change

The scope of the fraud definition was expanded to include individuals who knowingly participate in preparing false claims, and the definition of theft was broadened to cover falsified employee healthcare reimbursement claims.

DEFINITION

Changed the definition of medical assistance fraud to include anyone who knowingly participates in preparing a false claim, not just those who submit it.

REQUIREMENT

Increased criminal penalties, raising the maximum prison sentence to 20 years for large claims and adding a specific penalty tier for repeat offenders.

Added a new provision to the theft statute that explicitly prohibits falsifying claims for employee healthcare treatment or supplies.

ENFORCEMENT

Modified venue rules to allow prosecution in the county where the entity receiving the claim is located, in addition to where the crime occurred.

TECHNICAL

Updated the bill title and effective date to reflect the 1st Engrossment version.

Medicaid fraud provisions modification; attorney general certain subpoena and enforcement authority provision

What changed between versions

How they voted

Actions timeline

Sponsors