MN DHS failed to investigate alleged Autism program kickback violations
A new report from the Office of the Legislative Auditor determined that Minnesota Department of Human Services officials erred by failing to probe allegations of financial impropriety in a Medicaid-funded autism intervention program. The audit highlights significant flaws and recommends clarifications regarding anti-kickback laws, noting DHS possessed long-standing legal authority but did not act aggressively enough on complaints involving young people with disabilities.
Key Points
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1A recent audit by the Office of the Legislative auditor found that the Minnesota DHS had legal authority to investigate allegations of kickback fraud but failed to do so.
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2The report specifically criticizes officials' lack of aggressive action in examining complaints regarding Medicaid-funded autism intervention programs for young people.
Developments
Perspectives
A state auditor's office has determined that a department responsible to voters should have investigated allegations about fraud, including possible payments made by private entities.
— [Mar 17, 20:45] Report finds Minnesota DHS had authority to investigate kickback allegations in autism program (Bringmethenews)Minnesota social services officials didn't properly follow up on complaints of alleged back pay or other financial irregularities despite having legal power.
— [Mar 17, 20:45] Report finds Minnesota DHS had authority to investigate kickback allegations in autism program (Bringmethenews)Minnesota social services officials didn't properly follow up on complaints of alleged back pay or other financial irregularities despite having legal power.
— [Mar 17, 20:45] Report finds Minnesota DHS had authority to investigate kickback allegations in autism program (Startribune)Minnesota social services officials didn't properly follow up on complaints of alleged back pay or other financial irregularities despite having legal power.
— [Mar 17, 20:45] Report finds Minnesota DHS had authority to investigate kickback allegations in autism program (Fox9)A new report from Minnesota's Office of Legislative Auditor found that the Department of Human Services (DHS) should have investigated three allegations in an autism care program where a provider allegedly offered kickbacks. The auditor determined DHS had long possessed legal authority to investigate such fraud and impose sanctions, contradicting claims by officials who argued they lacked power without recent legislative changes expected later this year.
A March 17 auditor's report reveals Minnesota social services officials failed to investigate alleged kickbacks and fraud at an Autism program despite having legal authority, a scandal now estimated by prosecutors as costing billions. This misconduct contributed significantly to Gov. Tim Walz dropping his bid for re-election while prompting new legislative efforts to prevent similar abuse in state-funded programs.
An Auditor's report found Minnesota DHS failed to properly review and close three specific complaints alleging illegal payments (kickoffs) within its early childhood intervention services. While most other kickbacks were closed due to lack of evidence or non-fraud status because they involved only fee-for-service MA funds, the auditor noted that officials lacked authority under state law unless fraud was also alleged in those cases involving Medicaid waivers and private payers.