Committee reviews administration's anti-fraud package, House File 2603, covering Medicaid, grants, AI detection

St. Paul, March 24 — The Fraud Prevention and State Agency Oversight Committee heard an overview Monday of the administration's anti-fraud package, House File 2603, a multicomponent proposal designed to strengthen detection, enforcement and penalties for fraud against state programs.

The package, presented to committee members by Chair Lehi Pinto and a series of state agency leaders, groups proposals into three core priorities: stronger investigative and enforcement authority, better detection and oversight, and increased criminal penalties. "Fraud against these public programs is unacceptable. It's not a victimless crime and it harms the same people that we're trying to help with these services," said Erin Campbell, commissioner of Minnesota Management and Budget, summarizing the administration's rationale.

Why this matters: presenters repeatedly cited large sums at risk in federal- and state-funded programs and noted gaps in detection and oversight across agencies. The proposals would change administrative authorities and fund new personnel and technology, including an artificial intelligence pilot aimed at flagging anomalous Medicaid claims in real time.

Overview and criminal enforcement

Erin Campbell, commissioner of Minnesota Management and Budget, told the committee the administration intends the package to build on prior investments and executive actions to centralize and strengthen fraud controls across state government. Campbell noted Department of Revenue enforcement from 2022 to 2024 that the administration characterized as preventing $263,000,000 in fraudulent refunds and producing additional revenue through compliance efforts.

Drew Evans, superintendent of the…