Lawmakers plan to take action following federal fraud investigation
Findings laid out in a more than 60-page federal search warrant have the attention of Minnesota lawmakers on both sides of the aisle.
The FBI has raided at least two autism service centers this week, both are accused of Medicaid fraud in the millions of dollars — Smart Therapy Center in Minneapolis and Star Autism Center in St. Cloud.
Both are part of the Early Intensive Developmental and Behavioral Intervention program, also known as EIDBI. It’s funded by the state and federal government through Medicaid and helps centers provide education and support people with autism and their families.
Court documents say since the EIDBI program started in 2017, it’s seen an “exponential growth in Medicaid billing.” It shows nearly $1.3 million paid out that year, but this year through the end of November, that surged to nearly $230 million.
Investigators wrote in the search warrant that many companies that received that funding “have been submitting fraudulent claims for EIBDI services that were not actually provided.”
Now, weeks until the new legislative session, lawmakers say they’re preparing to take action.
“They’ll be some serious [conversations], from the individual who’s receiving the services, to the service provider, and the [Department of Human Services],” DFL Minneapolis Rep. Mohamud Noor told 5 EYEWITNESS NEWS.
As upcoming co-chair of the Human Services Committee, he says he’ll prioritize setting up a licensing process for autism service centers as, right now, they don’t need one.
“So that will be number one, but also putting the program integrity, in terms of, how do you ensure quality,” Rep. Noor added.
The Department of Human Services (DHS) oversees the EIDBI program — in a statement, DHS Commissioner Jodi Harpstead said of the two autism service centers in the FBI search warrant:
“DHS has open investigations into these providers. We work closely with our state and federal law enforcement partners in oversight of these and other Medicaid programs. DHS continues to gather and evaluate new information.
“Because of concerns about the integrity of autism services, we have stepped up our oversight and are conducting a thorough audit of the program. DHS is in the process of visiting every single site that participates in this program. We are digging further into cases where we note concerns and will conduct formal investigations if and where needed.”
But some lawmakers have made it clear, reining in on the state department will be their priority.
“They have failed to provide even the most basic services of oversight,” North Branch Republican state Senator Mark Koran said.
He says on the Legislative Audit Commission, he’ll be working on creating an independent watchdog.
“We need to build an office of fraud, investigate identification and prosecution that is holistic to all the units of government within the state,” Sen. Koran said.
5 EYEWITNESS NEWS is working on connecting with the two autism service centers.