Committee advances SF 2,689, the "MAP Act," to Human Services after AG office seeks 18 staff for Medicaid fraud unit

Senate File 2,689, the Medical Assistance Protection (MAP) Act, was recommended to pass by the Health and Human Services Finance and Policy Committee on April 14 and referred to the Committee on Human Services after supporters from the Attorney General’s Medicaid fraud unit laid out a case for expanding the office’s investigatory capacity.

Senator Johnson Stewart presented the bill as a bipartisan effort to strengthen the state’s ability to investigate and prosecute Medicaid provider fraud, saying the measure would add 18 staff to the Medicaid fraud control unit and update statutes to address persistent gaps in prosecuting provider misconduct. "The goal of this bipartisan bill is to protect a popular and important program that 1 in 4 Minnesotans rely on," Senator Johnson Stewart said.

Nick Wonka, director of Minnesota’s Medicaid fraud unit, testified that the unit currently operates with 32 people and that federal grant rules require newly funded positions to be dedicated fully to Medicaid fraud work to secure a 75% federal match. Wonka described a large increase in referrals — noting the unit received 144 unique referrals in 2019 and has received more than 300 since Oct. 1 of the current federal fiscal year — and said investigations have grown from single-worker cases to complex, agency-level inquiries. "We are asking you to give us the 25% necessary to expand to 50 people," Wonka said, adding that the federal Office of Inspector General has recommended an expanded unit size.

Wonka also walked the committee through statutory changes in the bill: expanding covered conduct (for example, falsifying enrollment documents or records destruction), adding an intent requirement so prosecutions target deliberate misconduct rather than accidental errors, creating a separate penalty tier for offenses over $1,000,000, and granting subpoena powers similar to those available to county attorneys (citing current Minnesota statute language referenced in testimony).

Committee members probed how referrals arrive and what constitutes a "credible allegation," with Wonka explaining that most referrals come from the Department of Human Services and managed care organizations but that law enforcement and public tips also arrive. On whether declined referrals require DHS to lift payment suspensions, Wonka said federal regulations permit different interpretations and that DHS retains discretion over administrative payment decisions; the AG’s office cannot direct DHS to resume payments because DHS administers the program.

Several members raised concerns about due process and the scope of new recordkeeping offenses; Wonka emphasized the bill’s mens rea protections, saying knowingly and intentionally failing to maintain records is required for criminal exposure and that the bill preserves non-felony treatment for lesser recordkeeping lapses.

On a voice vote, the chair moved the bill to the Committee on Human Services. The committee’s motion was recorded by the chair as prevailing; no roll-call tally was given in the hearing record.

The bill will next be considered by the Human Services Committee. The committee’s hearing transcript shows that sponsors and AG office staff expect the proposal to rely on a 75% federal match for the added positions and that the state share is required to secure that match.