[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6634726,"mediaKeyId","2662689-2ff320a69f9f4cacf56f9ecf74048cd7","parentId",2662689,"title","BCA merges fraud units, coordinates with DHS; autism provider audits and Feeding Our Future ties under review","audioSeconds",822,"startMs",4514000,"endMs",5336000,"viewUrl","/Search/View?dp=1&key=2662689-2ff320a69f9f4cacf56f9ecf74048cd7&start=4514&end=5336","thumbnailUrl","https://assets.pipeline.soar.com/2662689-2ff320a69f9f4cacf56f9ecf74048cd7/thumbnail_4514000.jpg","articleUrl","/articles/6634726/Minnesota/BCA-merges-fraud-units-coordinates-with-DHS-autism-provider-audits-and-Feeding-Our-Future-ties-under-review","mediaUrl","https://secure.pipeline.soar.com/6634726-f194b851ed039ef3c74a9f5e3b83e7e9/orig.mp4?Expires=1771161062&Signature=l9SARhXQ1Z3tTGr3otQ9p0YLxLmbog3Ke0HPhuvzKqOGHlLtO0vQE8nBFqyhpCTjWx7kdKHyp-7TeseEqbsFqByYkcxxaiKx1j1yVjVEfRtcMwlqq4cOswrPkqxkmPlTza6YTXkEbyhNRT7Dmt0CLFUTopNOJcXhGjePOK1ym3Vy6Z73VIR6Zk~QhK1Er6X1VzVMeEMyFXrhy4YmKrySEU64Ni2~n0THXNmPZgDBALMsYD-~kmj~QiMzdN9CM31pT5uFPXF36gDJ07ObxglHwq6PAwrD35ZsYO-b265gdNVORI~C1oVeIUdnKARLxzroXH1JNgZsF0wzckefoZTSsg__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Legislature","date","2025-03-17T18:33:34.9Z","article","The Minnesota Bureau of Criminal Apprehension has combined the Commerce Department’s fraud bureau with its own financial crimes section and is moving to a single, statewide unit to investigate government-program fraud, Superintendent Drew Evans told lawmakers on March 17.

Evans said the newly aligned financial crimes and fraud section, completed on Feb. 7, will focus on insurance fraud, wage-theft and misclassification crimes, traditional financial crimes and state-program fraud. The unit will accept criminal referrals when prosecutors or investigators identify credible evidence of criminal fraud, and Evans said investigators will coordinate with the Attorney General’s Medicaid Fraud Control Unit when suspected Medicaid criminal fraud arises.

Why it matters: Committee members have focused on recent criminal matters that intersect Medicaid, grant funding and autism services. DHS officials said their Office of Inspector General has conducted in-person audits of early intensive developmental and behavioral intervention (EIDBI) providers and that the agency has taken actions — ranging from disqualifications and license revocations to payment suspensions — as appropriate in individual cases.

Autism-provider concerns

Several legislators asked DHS about particular providers that have appeared in public reporting and in federal indictments tied to a separate investigation called Feeding Our Future. Chair Robbins asked whether the department had stopped payments to two programs that were the subject of federal search warrants; Gandhi said DHS has reviewed payments and taken actions depending on the program. \"We have taken actions to disqualify people from our programs, to revoke licenses, and to stop payments,\" Gandhi said. The department also said it is conducting audits of EIDBI sites in person.

DHS and BCA officials repeatedly stressed limits on public disclosure. Gandhi told the committee that payment-withhold information is confidential, and Alyce Bailey and other DHS officials said fiscal detail often lives in separate finance systems, not the contracts integration system.

BCA role and enterprise coordination

Evans said that, with the consolidation, the BCA unit can accept referrals from multiple state agencies and pursue cases that cross jurisdictions. The new unit will also work to provide feedback to state agencies and to Minnesota Management and Budget’s internal-controls team so that investigative findings can inform statewide process improvements.

Lawmakers asked about recurring schemes: overbilling of service hours, misclassification of workers as independent contractors, and operators who dissolve one entity and reconstitute under another name. Evans said the agency is pursuing a holistic approach that includes forensic accounting support, prosecution assistance in Greater Minnesota and improved information-sharing across agencies to identify repeat offenders and emerging fraud patterns.

Ending: Both DHS and the BCA told the committee they will continue audits and criminal referrals. Lawmakers asked for additional follow-up from DHS on which providers had been disqualified or had payments stopped, and for the BCA to coordinate evidence-sharing so law enforcement and administrative agencies can act in concert.","mediaType","Video","parentTitle","House Fraud Prevention and State Agency Oversight Policy Committee 3/17/25","oneSentenceSummary","The Bureau of Criminal Apprehension has combined state financial-fraud resources and said it will coordinate with DHS and the attorney general’s Medicaid fraud unit on criminal cases. Committee members pressed DHS about audits and payment withholds for autism-service providers connected to recent indictments.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6634731,"DHS urges stronger payment-withhold authority, anti-kickback law as part of governor’s anti-fraud package",392,4168000,4560000,"/Search/View?dp=1&key=2662689-2ff320a69f9f4cacf56f9ecf74048cd7&start=4168&end=4560","https://assets.pipeline.soar.com/2662689-2ff320a69f9f4cacf56f9ecf74048cd7/thumbnail_4168000.jpg","/articles/6634731/Minnesota/DHS-urges-stronger-payment-withhold-authority-anti-kickback-law-as-part-of-governors-anti-fraud-package","https://secure.pipeline.soar.com/6634731-3ca19d0ec7b1e5d4e016ea0e860fa722/orig.mp4?Expires=1771161062&Signature=VgEi4oUST~VzBk7L56TSu7BieY6Qf3vf1aVPEGXfCo1sg2R~hzwH7shXc4oaxAjQdUqUQHE1T82ZOH7tyQd2mwFu-lFb7ytpfT6ZDJu6tha5mad~xkVY62B7r-RYagGj9acXr6HcwMM-3CXVJm-WYJg7g8849jKixNI2YsNCxn1ehNjZiatxWk-FfrIbxTRJKwPw~9YSfhwP8Gyb5txVM3LqCS2GiGZViKGRr5NhiKJu7hd-311juf0jZe2cgZcND0QVGanj-ld5iVUUP2VCsf5nYJrPQsfq6wxDKVD3ZdQ41qJ6pO4sn6q0Q719q2CJMbpBx1tt-5aZM0Sg5l8k1A__&Key-Pair-Id=KUT5TJCACFTXG","Department of Human Services officials told the Fraud Prevention and State Agency Oversight Committee on March 17 that expanding payment-withhold authority and widening anti-kickback tools are central elements of the governor’s proposed anti-fraud package.

Temporary Commissioner Shereen Gandhi and DHS staff described payment withholds as \"a temporary action to stop payments to providers during an investigation,\" and told the committee that the agency has used withholds roughly 725 times over the past five years while conducting about 4,000 investigations. Gandhi said the proposed changes would reduce the chance that a court would later overturn a department action by clarifying administrative authority.

Why it matters: Lawmakers and DHS staff said clearer authority to stop payments while administrative appeals are pending would better protect state funds and the people the programs serve. The proposal also would allow DHS to disclose more information about withholds that is now classified as confidential.

What DHS proposed and lawmakers discussed

- Payment withholds: DHS said current law allows withholds when there is a credible allegation of fraud, but officials told the committee that clarifying and broadening statutory authority would close legal gaps and make agency actions more defensible in court.

- Transparency of investigations: DHS asked the Legislature to allow the department to publicly state when it has issued a payment withhold, mirroring the existing authority to disclose the existence of an investigation.

- Anti-kickback expansion: DHS recommended making certain kickbacks actionable at the state level. Commissioner Gandhi told lawmakers she supports Minnesota joining the 36 states that have explicit anti-kickback statutes, saying the change would give prosecutors and DHS stronger tools against inducements to enroll or steer participants to services.

Committee members questioned whether courts had previously blocked withholds and whether existing federal law already addressed kickbacks. Gandhi said DHS would provide more detail on past court decisions if available; she also noted that federal law outlaws kickbacks but that a state statute can fill enforcement gaps when only a kickback — absent clear billing fraud — is suspected.

Concerns and follow-ups: Vice Chair Anderson asked for examples and urged stronger state action; several legislators asked DHS to return with specific language and with data on how many payment-withhold actions have been reversed by the courts. DHS said it would need to consult legal staff to answer whether any court had ordered payments to continue despite fraud allegations.

Ending: DHS said it will present the governor’s anti-fraud package to relevant committees in coming weeks and requested legislative partnership on precise statutory language to strengthen withhold authority and anti-kickback enforcement.","DHS and the Bureau of Criminal Apprehension outlined gaps in existing authority to pause payments to suspected fraudsters and asked for legislation to expand transparency and to criminalize kickbacks not covered by current law.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6634734,"DHS behavioral health office says it has closed most audit recommendations, flags staffing and system limits",1207,118000,1325000,"/Search/View?dp=1&key=2662689-2ff320a69f9f4cacf56f9ecf74048cd7&start=118&end=1325","https://assets.pipeline.soar.com/2662689-2ff320a69f9f4cacf56f9ecf74048cd7/thumbnail_118000.jpg","/articles/6634734/Minnesota/DHS-behavioral-health-office-says-it-has-closed-most-audit-recommendations-flags-staffing-and-system-limits","https://secure.pipeline.soar.com/6634734-0d883c2356b5b16ebea0aea717468cdc/orig.mp4?Expires=1771161062&Signature=S4esiqkeu0TKG1dr1-GRH0Ppp28fAu2TCwx8ZyRwc3Ug~laI7Nib2EzNG4fZ4H670xU2JD-SUnFoppcFEu6T3~t5i7X6JwGxmT0p-zstqbF5~4RtKTuITjYlCIcKGGU48FK6QYIVOzHdEnPjgSFZCu5m8rBwiAhGrvyEcArPf8ouAp0WQeBeXtdJlI-YcKsAdJdy8bwOt3beMeUSpCWR8xT3ZwoH6Ez5E1~A2rn8c3pY3~2wD2xSaproc2fG-ki9782T4EsU3d1LvJkMLndnbptn~waV1M0MgbyBR1nmL2arWaXgxpzsM7WVDeW3QLmemO9XKOnOJPlZobVry-mo5g__&Key-Pair-Id=KUT5TJCACFTXG","The Minnesota Department of Human Services told the Legislature’s Fraud Prevention and State Agency Oversight Committee on March 17 that its newly formed Behavioral Health Administration has implemented many of the Office of the Legislative Auditor’s recommendations and is continuing to strengthen grant and contract controls.

Assistant Commissioner Teresa Steinmetz and Temporary Commissioner Shereen Gandhi said the administration has reorganized leadership, hired a contracts and compliance unit manager, launched staff training and implemented quality-control steps in the department’s contract integration system.

Those process changes followed audits the department cited to the committee. Steinmetz said 26 of 32 recommendations from OLA reports dating to 2019 and 2021 had been closed as of February 2025, and the six remaining items from a March 2021 audit were in the final stages of remediation. \"We've put some kind of safeguards in place to make sure that things get uploaded,\" Steinmetz said, describing new upload requirements and standardized templates for requests for proposals and other grant documents.

Why it matters: DHS officials told lawmakers the state has rapidly increased behavioral health grant funding in recent years while staffing levels remained comparatively flat, creating risk that documents or oversight tasks can be missed. Strengthened processes aim to reduce errors, improve compliance monitoring and increase the visibility of grant performance across the administration.

Key details provided to the committee include: the Behavioral Health Administration (BHA) has about 210 staff, roughly 50 of whom perform grant-manager duties; BHA oversees about 90 grant programs supported by about 1,000 contracts; and grants activity has grown by roughly 333% over the past decade per a chart Steinmetz presented. DHS also reported that it has adopted 25 training modules for grant staff and that a spot check of 20 RFPs published since April 2023 showed 100% compliance in uploading conflict-of-interest forms.

Committee members pressed DHS on several operational limits. Lawmakers asked whether progress and financial reports are consistently uploaded and reviewed; Steinmetz said deficiencies had occurred in the past but that new processes and a compliance unit manager are intended to close those gaps. Alyce Bailey, DHS budget director, told the committee that transfers of appropriated funds depend on the legal authority behind each appropriation: \"Some grants have specific riders… In that instance, if all the funds haven't been spent, that cannot be transferred,\" she said.

Lawmakers also raised the separation between DHS document tracking and fiscal systems. Steinmetz and Gandhi said the contract integration system (a document repository) is separate from the department’s fiscal databases; financial reconciliation and decisions about transferring unspent funds are handled in the agency’s finance systems. Gandhi told the panel the division of systems makes it harder to automatically detect billing anomalies and that an end-to-end grants-and-payments solution would improve fraud prevention.

On mandatory training and conflicts of interest, DHS said training is broadly required of staff who perform grant work and attendance is tracked, but that training is not yet a mandated item in position descriptions. Steinmetz said supervisors encourage participation and that recorded modules and one-on-one follow-ups are available. The department said conflicts identified in the sampled RFPs were mitigated by reassigning reviewers when appropriate.

What remains open: Committee members asked DHS to provide more detailed accounting about one-time federal COVID-related grants that expire in 2025, and for a state-to-state comparison of treatment engagement metrics. Vice Chair Anderson and Representative Greenman asked DHS to show evidence that expanded programs produce measurable improvements, not just enrollment. Steinmetz said the department can provide comparative metrics but cautioned that causation in behavioral health outcomes is difficult to prove.

Ending: DHS officials asked for continued legislative partnership on enterprise solutions and cautioned that as program rules and funding streams grow more complex, the agency’s ability to ensure payment accuracy requires both process improvements and clearer, consolidated systems.","Department of Human Services officials told a legislative committee they have implemented processes to improve grant and contract oversight in the new Behavioral Health Administration but acknowledged remaining gaps in staffing, data systems and mandatory training.","actionData","errors"]

Article not found

BCA merges fraud units, coordinates with DHS; autism provider audits and Feeding Our Future ties under review

DHS urges stronger payment-withhold authority, anti-kickback law as part of governor’s anti-fraud package

DHS behavioral health office says it has closed most audit recommendations, flags staffing and system limits