AG Ellison, Rep. Norris, Sen. Johnson Stewart introduce bipartisan bill cracking down on Medicaid fraud

Bill would increase size of Medicaid Fraud Control Unit to keep up with increases in state Medicaid budget, add subpoena powers, and increase penalties for large theft

Minnesota AGO’s Medicaid Fraud track record already highest among similarly sized states; bill builds on this success

March 17, 2025 (SAINT PAUL) — Today, Minnesota Attorney General Keith Ellison, Senator Ann Johnson Stewart, and Representative Matt Norris introduced the bipartisan Medical Assistance Protection (MAP) Act, H.F. 2354, a bill that will expand the Attorney General’s Office’s ability to investigate Medical Assistance fraud (known federally as Medicaid), give the office new tools to hold fraudsters accountable, and increase penalties for those found guilty of stealing money meant for low-income Minnesotans’ healthcare.

The MAP Act will improve the Attorney General’s Office’s ability to investigate and prosecute fraudsters by:

“Stealing money meant for the health care of poor families is illegal and immoral,” said Attorney General Ellison. “My team and I already have a great track record of holding Medical Assistance fraudsters accountable, and we could do even more with a stronger set of state laws. Today, I’m asking the legislature to swiftly hold hearings on and pass the MAP Act, which will give my office the tools we need to see that more wrongdoers face justice. I’m grateful to Representative Matt Norris and Senator Ann Johnson Stewart for sponsoring the MAP Act, I am pleased the legislation already has bipartisan support, and I look forward to engaging lawmakers on this important issue. This is something we all agree on, so let’s get it done.”

"One duty of government is to safeguard public funds so they don't fall into the hands of scammers and fraudsters, particularly when those funds are meant to provide health care for low-income folks. However, this duty cannot exist in a vacuum. Our agencies responsible for enforcement need the right resources and legal authority to hold bad actors accountable. That's why I'm happy to author HF 2354," said Representative Matt Norris (DFL - Blaine). "With this legislation, the Attorney General and his vigilant staff will be empowered to minimize fraud in Minnesota. This is something we can all get behind."

“I’m proud to be the author of the MAP Act in the Senate,” said Senator Ann Johnson Stewart (DFL-Minnetonka). “Bad actors who steal funds designated to provide healthcare to some of the most vulnerable Minnesotans must be held accountable. This bill gives Attorney General Ellison and his team the resources they need to expand their work on catching fraudsters and safeguarding Medical Assistance for people who rely on it.”

Background on the MFCU

The Medicaid Fraud Control Unit (MFCU) is a unit within Attorney General Ellison’s Office that investigates and prosecutes Medicaid provider fraud. Similar units exist in all 50 states across the country and are generally located within the attorney general’s office. 75% of the unit’s funding comes from federal government grants and the other 25% comes from the State. While attorneys general direct the day-to-day work of MFCUs, the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) exercises some oversight of MFCUs, including auditing their performance and recertifying them yearly.

Increasing MFCU Staffing

The MAP Act would appropriate $390,750 in 2026 and in 2027 to increase the size of Minnesota’s Medicaid Fraud Control Unit from 32 to 41.

MFCU staffing levels are based on the size of a state’s Medicaid budget. The present size of Minnesota’s MFCU, 32, was set when the state’s Medicaid budget was roughly $13 billion. Now that the Medicaid budget is approaching $20 billion, HHS OIG recommends Minnesota’s MFCU increase its staffing levels to 41.

States with similar Medicaid budgets to Minnesota’s often have larger MFCUs, as illustrated below using data from HHS OIG’s 2023 annual report:

State Medicaid Budget MFCU Staff
Minnesota $19,113,079,015 32
Washington $19,498,539,690 55
North Carolina $20,451,882,615  47
Virginia  $21,599,145,038  94

Despite the Minnesota MFCU’s smaller size, it regularly outpaces its peer states. An HHS OIG audit of Minnesota’s MFCU noted that from 2020–22, Minnesota won the most convictions for provider fraud when compared with similarly sized states. The passage of the MAP Act would further expand our MFCU’s ability to hold fraudsters accountable.

Minnesota’s MFCU also more than pays for itself through the criminal restitution and civil recoveries it wins. The unit’s budget is roughly $5 million per year, of which the State only pays 25%. From 2019-24, Minnesota was awarded $53,237,300.35 in civil penalties and criminal restitution thanks to the MFCU’s work.

Expanding the AGO’s Subpoena Authority

The MAP Act improves the Attorney General’s Office’s ability to investigate Medicaid fraud by expanding the office’s subpoena powers. Specifically, when AGO is conducting a provider fraud investigation, the act grants the AGO the same authority to subpoena financial records as county attorneys do when they conduct welfare fraud investigations.  At present, even when the AGO is conducting a criminal investigation, it lacks the same authority to acquire certain records as county attorneys have.  The MAP Act would fill this gap.

Improving Minnesota’s Medical Assistance Fraud Legislation

Minnesota’s current Medical Assistance fraud law classifies Medical Assistance fraud as an attempted theft of public funds, rather than a completed theft. The maximum penalty allowed under this law is 2.5 years in prison, regardless of the amount stolen. The MAP Act brings Minnesota’s Medical Assistance fraud law in line with other theft laws, which carry a maximum penalty of up to 20 years in prison and a fine of up to $100,000 for theft of over $35,000.