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| Date: | February 14, 2012 | | Contact Name: | Libbie Krueger | | Contact Phone: | 651.296.1388 | | Contact Email: | elizabeth.krueger@senate.mn | | For Immediate Release | |
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| Federal Government Investigates Department of Human Services, HMOs Nienow Bill Would Combat Future HMO Transparency Problems |
(St. Paul) – Department of Human Services Commissioner Lucinda Jessen has acknowledged that the federal government has launched an investigation of four Minnesota HMOs over billions of state taxpayer dollars spent for health care programs.
Investigations allegedly focus on claims that state health care dollars were inflated in order to receive matching funds from the federal government. Senator Sean Nienow (R - Cambridge) drew attention to potential illegal action last year and introduced legislation to combat issues of fraud in our state’s health care programs. On Monday, February 13th, he introduced Senate File 1824, a target bill which requires annual independent third-party audits of public health care programs to prevent potential fraudulent activity in the future.
“I suspected there was a problem last year and introduced a number of bills to combat HMO payment fraud. This session we narrowed our focus and introduced a key piece of legislation that requires third-party audits. The proposed third-party audits would identify fraudulent activity internally and prevent problems in the future,” said Nienow.
In KSTP’s investigative report, Department of Human Services Commissioner Lucinda Jessen confirmed that there is an ongoing investigation underway. However, she did not discuss the details of the investigation.
Nienow added, “To spend taxpayer money that is not supposed to be spent is stealing. We must first address the current investigation and then pass legislation to prevent future fraud. Third-party audits are one tool to prevent the mismanagement of health care programs and taxpayer dollars.”
The Finance and Reform Divisions of the House Health and Human Services Committee will hold a joint hearing on HMO transparency today at 12:30 PM in State Office Building Room 200.
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