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Fraud control talks back in play at Minnesota Legislature

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In December 2025, federal prosecutors announced new charges in a widespread Medicaid fraud investigation, leading to new political turmoil about who was at fault and what should be done. 

Minnesota's new legislative session is underway, and lawmakers are expected to take a fresh look at fraud prevention efforts following high-profile cases.

Fraudsters posing as phony service providers have plagued Minnesota's social safety net programs. Either through legislative action or executive orders, the state has made moves to prevent future taxpayer dollars from being stolen. But there are calls for additional solutions that have support from legislators in both parties.

Mark Haveman, executive director of the nonpartisan Minnesota Center for Fiscal Excellence, suggested it's worth monitoring how recent efforts play out – but agrees policymakers shouldn't stop looking.

"There's something missing within the system of how we look at how these programs are designed and managed," he said.

A key debate that remains unresolved is whether the state should create a new Office of Inspector General. That bill gained traction last session but ultimately faded following concerns it would be redundant. Minnesota's fraud scandals have resulted in political finger-pointing, but Haveman said he feels there's a specific area where lawmakers from both parties have fallen short, and that's updating antiquated IT systems within human service programs.

As the situation continues to garner news headlines, Haveman said, it's understandable to think that lawmakers have to respond in a way that resonates with taxpayers.

"I understand citizens' frustration," he said. "I understand the fact that there are providers there who have been operating as they should and doing good work for the state of Minnesota that are feeling the effects of the actions that have had to be taken."

As for this session, House Republicans are vocal about renewing talks on the Office of Inspector General. Meanwhile, Rep. Steve Elkins, D-Bloomington, said he's been speaking with Minnesota Information Technology Services on what needs to be fixed, with hopes money can be found to make upgrades.

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