Attorney general could subpoena records in fraud investigations

The attorney general or a lawyer authorized in writing could subpoena listed records. The listed records include work, insurance, banking, and other financial records connected to an investigation under the medical assistance law, as well as records from several other kinds of businesses. The records must be relevant to an ongoing, legitimate law enforcement investigation.

A person who commits listed medical assistance fraud could face criminal penalties. The offenses cover people who seek medical assistance funds or submit claims, applications, or records connected to those funds. The listed offenses include fraudulently seeking medical assistance money, filing claims known to be ineligible, giving false provider information, falsifying service records, and knowingly controlling a provider entity while barred from enrollment. Destroying required records after a lawful request is also covered. Knowingly and intentionally failing to keep required records while submitting a claim or rate application is a gross misdemeanor. A conviction could bring up to ten years in prison, a fine up to $20,000, or both. If victim losses exceed $100,000, the maximums rise to 20 years and $100,000; if losses exceed $1 million, they rise to 30 years and $1 million. A court could also order restitution for losses tied to the crime and certain related conduct. The new fraud section would apply to crimes committed on or after August 1, 2026.

The bill would provide $1.23 million to the attorney general to combat medical assistance fraud. The recipient would be the Minnesota attorney general. The money would come from the general fund and support work under the bill's medical assistance fraud section. The appropriation is for fiscal year 2027.