Panel advances bill to let Health and Welfare share tax data to investigate non‑Medicaid benefits fraud

House Bill 62, which would authorize the Idaho Department of Health and Welfare to enter a memorandum of understanding with the Idaho State Tax Commission to obtain adjusted gross income information for investigations of non‑Medicaid public benefits, was sent to the Senate floor with a due‑pass recommendation after a committee voice vote.

Jared Larson, legislative and regulatory affairs chief at the Department of Health and Welfare, told the Senate Health & Welfare Committee the bill is “relatively simple in that it authorizes the department to enter into a memorandum of understanding with the tax commission.” Larson said the request targets verification of benefits such as TANF, not Medicaid, and that adjusted gross income on tax returns is the “dispositive piece of information” for those determinations.

The bill is intended to make investigations less time‑consuming and less intrusive than the current practice of compiling bank records and issuing subpoenas, Larson said. “It’s easier, more efficient, and less intrusive to go to the tax commission where we can get the straightforward information rather than cobble it together with more private information,” he said, adding the Tax Commission already holds about 60 memoranda of understanding with other public entities.

Why it matters: Committee members framed the change as an accountability measure for taxpayer dollars. Senator Wintrow thanked Larson and said the measure helps ensure “we’re spending that wisely and holding people accountable.” Larson characterized most cases as civil recoupment rather than criminal prosecutions.

Implementation and fiscal effects: Larson told the panel the Tax Commission did not raise concerns in preliminary discussions and that the department expects no fiscal impact to its operations; investigators would spend less time piecing together cases, he said. Senator Harris asked whether the Tax Commission would incur new costs; Larson said the commission “did not indicate that it would cause any additional burden.”

Committee action: Senator Kaiser moved and Senator Ziderfeld seconded a motion to send House Bill 62 to the floor with a due‑pass recommendation. After a voice vote, the committee chair said the motion passed.

What the bill does not do: Larson emphasized the bill is not designed to change how Medicaid fraud is handled; Medicaid fraud investigations remain under a different statutory scheme and unit.

Next steps: With the committee’s due‑pass recommendation, House Bill 62 moves to the Senate floor for further consideration.