A second fraud-fighting bill is headed to the House Floor.
On Tuesday, the House Ways and Means Committee advanced HF2354, as amended, that would increase staffing for the state’s Medicaid fraud investigation unit in the Office of the Attorney General.
“We’re fighting fraud on all fronts this afternoon,” said bill sponsor Rep. Matt Norris (DFL-Blaine). His bill to create an Office of Inspector General was approved by the committee last week and is scheduled for House action Thursday.
The current bill would allocate funds primarily for hiring 18 new Medicaid fraud investigation unit positions: 11 investigators, three attorneys and four support staff at a cost of $1.23 million from the General Fund in Fiscal Year 2027. The amendment would eliminate future year General Fund spending beginning in Fiscal Year 2028, instead setting the base at $1.23 million from the state government…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.