The proposed bill aims to enhance consumer protection by addressing Medicaid fraud through several amendments and new provisions. It grants the attorney general and authorized assistant attorneys general the authority to issue subpoenas for records from various entities, such as telephone companies, financial institutions, and insurance companies, to assist in Medicaid fraud investigations. A new section, 609.467, is introduced to specifically define medical assistance fraud and establish criminal penalties for individuals who knowingly submit false claims related to medical assistance funds, with penalties including fines and imprisonment based on the fraudulent claim amount. The bill also repeals the existing statute 609.466 and makes conforming changes to other sections of Minnesota Statutes, including 256B.12 and 609.52, to align with the new provisions.

Additionally, the bill amends the statute of limitations for various offenses, specifying time frames for filing indictments or complaints after the commission of the offense, with certain theft-related offenses requiring filings within five years. It appropriates $390,750 from the general fund for fiscal years 2026 and 2027 to the attorney general to combat medical assistance fraud, with a base appropriation set for subsequent years. The repeal of Minnesota Statutes 2024, section 609.466, indicates a significant shift in how medical assistance fraud is addressed within the legal framework, with new penalties for such fraud taking effect on August 1, 2025, for crimes committed on or after that date.

Statutes affected:
Introduction: 609.466, 8.16, 256B.12, 628.26
1st Engrossment: 609.466, 8.16, 256B.12, 609.52, 628.26