State lawmakers are gearing up to combat fraud in state programs after federal investigators accused two autism centers of swindling state Medicaid money. Following the FBI raid on the offices of these centers, DFL Gov. Tim Walz has announced plans for a “pretty significant package” of fraud prevention measures, which he will unveil before the legislative session begins on January 14. The investigation into the autism centers is linked to the Feeding Our Future scandal, where defendants associated with these centers received state funds for providing services to children with autism. Medicaid reimbursement claims for these services escalated from $1.7 million in 2017 to $400 million in 2024.
House Republicans, who will have equal power with Democrats in a tied chamber, are calling for answers and accountability. They plan to work with the Office of Legislative Auditor to review agencies and state programs to prevent fraud. GOP Speaker-designate Lisa Demuth wants to ensure agencies follow recommendations to combat fraud, rather than adding more departments to address the issue. Lawmakers will return for the 2025 session facing a $5.1 billion deficit while working on the next two-year budget.
The Department of Human Services is reviewing the autism programs at the center of the federal investigation and will make recommendations for regulatory changes. Lawmakers are focused on preventing fraud and ensuring that those who commit fraud are punished. Plans for an independent Office of Inspector General to crackdown on fraud and ensure the good stewardship of taxpayer money are also being considered by lawmakers.
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