Republican lawmakers request federal audit of Minnesota Department of Human Services

Republican lawmakers in the Minnesota House of Representatives are asking the federal government to conduct an audit of the Minnesota Department of Human Services (DHS).

The request comes just days after federal agents raided multiple businesses suspected of participating in a “massive scheme to defraud” Minnesota’s Housing Stabilization Services program, administered by DHS but funded by Medicaid.

In a letter to the U.S. Department of Health and Human Services’ acting inspector general, Rep. Kristin Robbins, R-Maple Grove, said fraud has occurred in Medicaid-funded programs such as Housing Stabilization Services, non-emergency medical transportation, recovery services, and an autism program.

“This fraud has gone unchecked for years, despite numerous reports by our Office of the Legislative Auditor about the lack of proper internal controls, problems with verifying eligibility and overpayments or double billing,” wrote Robbins. “Unfortunately, we believe this is just the tip of the iceberg and we think the time has long past for ‘reforms’ that have been suggested but not implemented.”

In turn, the Republican lawmaker said federal intervention is necessary given how many programs may be involved. Specifically, Robbins asked for a “comprehensive audit” of DHS’ Home and Community-Based Services (HCBS) programs which are funded by Medicaid.

“For years, DHS has failed to prevent massive fraud and abuse, costing taxpayers what will be over $1 billion when investigations are said and done, according to Acting U.S. Attorney for Minnesota, Joseph Thompson,” Robbins said in a statement. “This culture of corruption must end. It’s time for real accountability, and that starts with a full, independent federal audit.”

Robbins is the chair of the Fraud Prevention and State Agency Oversight Policy Committee in the House. Speaker Lisa Demuth and two GOP committee co-chairs also joined the letter.

“The Minnesota Department of Human Services is focused on rooting out fraud and abuse to protect taxpayer dollars and the people we serve,” said Temporary DHS Commissioner Shireen Gandhi in a statement to Alpha News. “We have investigated thousands of Medicaid providers in recent years. DHS regularly provides critical data and information to law enforcement that assists with their actions.”

The commissioner noted that DHS shared data with law enforcement that led to the federal raids last week. Further, Gandhi said fraud schemes have become more sophisticated, but DHS has worked to “tighten up program requirements” and “add new tools” in partnership with state legislators.

“We will continue to work with state and federal partners, including any additional federal audits, to improve program integrity,” added the commissioner.

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