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Committee backs certification plan for recovery community organizations; critics urge oversight and inclusivity
Summary
Conference committee adopted an amendment naming the Minnesota Association for Recovery Organizations (MARCO) as the primary certifier for recovery community organizations (RCOs) for Medicaid billing, while adding delegation ability to DHS if MARCO ceases operation. Opponents in committee raised past concerns about selection and inclusivity.
Conference conferees adopted language that identifies the Minnesota Association for Recovery Organizations (MARCO) as the primary certifying entity for recovery community organizations (RCOs) that enroll to bill Medicaid, but includes a mechanism for the Department of Human Services (DHS) to designate another certifier if MARCO becomes nonfunctional.
Representative Frederick moved an amendment that reduces the number of named certifiers to one (MARCO) while giving DHS authority to identify a replacement if MARCO were to cease operating. Frederick and other sponsors said the change addressed earlier problems in the certification process, reduced fraud risk and reflected outreach to RCOs statewide. Frederick said the amendment was a compromise: entities that received temporary administrative law judge rulings in prior years would be required to later attempt formal certification.
Opponents in committee, including Senator Abler, said they remembered earlier controversies under a prior national certifier (ARCO) and that some tribal and regional groups had felt excluded during earlier certification efforts. Abler said past hearings revealed concerns that some certifying boards were provider-heavy and displayed a proprietary stance that discouraged certain organizations. He said he intended to monitor implementation closely and reserved the right to oppose the approach if MARCO’s practices did not change.
DHS witness Christy Grama explained that MARCO (a Minnesota association distinct from the prior national ARCO) now holds a DHS contract and that DHS has contractual enforcement tools if MARCO diverges from expected certification standards. DHS staff and proponents said they had convened outreach—including a statewide virtual town hall—to test the proposal with RCOs; sponsors said they received no opposition from RCOs who participated.
After extended debate, the committee adopted the amendment and later passed the underlying sections in Article 4 implementing RCO certification and fraud controls. DHS staff said they would retain oversight through contracting authority and could step in if MARCO failed to meet requirements.
Votes at a glance: House amendment a9 (authorizing MARCO as primary certifier and DHS backstop) — moved by Representative Frederick; adopted by voice vote.
