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HF 2354

Medical assistance fraud governing provisions added and modified, attorney general provided subpoena and enforcement authority, criminal penalties provided, conforming changes made, and money appropriated.

2025-2026 Regular Session Introduced by Robert Bierman and 14 co-sponsors

HF 2354 strengthens Minnesota Medicaid fraud enforcement by expanding AG subpoena/enforcement powers, boosting penalties, and funding implementation.

Referred to Finance
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Bill Summary · HF 2354

HF 2354 — Summary

Title: Medicaid fraud provisions added and modified; attorney general provided subpoena and enforcement authority; criminal penalties provided; conforming changes made; money appropriated.
Bill No.: HF 2354 (Introduced 2025‑03‑13)
Status (selected actions): Introduced 3/13/2025; committee referrals and multiple committee reports in March–April 2025; author added Bierman 4/24/2025.
Companion bill: SF 2689

Purpose / Intent

The bill is designed to strengthen Minnesota’s response to Medicaid fraud by (1) revising and adding statutory Medicaid‑fraud provisions, (2) expanding the Attorney General’s investigative and enforcement powers (including subpoena authority), (3) creating or increasing criminal penalties for Medicaid‑fraud offenses, and (4) making conforming statutory changes and appropriating funds to implement the changes.

Key provisions (high level)

Note: the public summary and bill title were provided; the bill text itself is needed for precise statutory language, penalty amounts, and appropriation figures. The provisions below describe the types of changes the bill proposes based on its title and subject.

  • Medicaid fraud definitions and scope

    • Adds or revises definitions related to Medicaid program fraud, potentially clarifying covered conduct (e.g., false claims, billing for services not rendered, kickbacks, identity fraud, misrepresentation of eligibility).
    • Expands the scope of conduct that constitutes a violation of Medicaid fraud statutes.

  • Attorney General authority

    • Grants or clarifies subpoena power for the Minnesota Attorney General to compel documents, testimony, and records in Medicaid‑fraud investigations.
    • Provides authority to initiate civil or administrative enforcement actions, place holds on assets, seek injunctions, or otherwise enforce compliance with Medicaid‑fraud laws.

  • Criminal penalties and enforcement tools

    • Establishes new criminal offenses or increases penalties for existing Medicaid‑fraud crimes (title indicates criminal penalties are provided).
    • May include provisions for restitution, fines, and possible imprisonment for serious offenses.
    • May create or amend mechanisms for civil penalties, treble damages, or qui tam/whistleblower actions (if modeled on False Claims Act‑type enforcement).

  • Conforming and administrative changes

    • Makes statutory clean‑up and cross‑reference updates to other statutes affected by the new provisions.
    • Updates procedures for interagency cooperation (e.g., Department of Human Services, Attorney General, local prosecutors).

  • Appropriations

    • Appropriates money to implement enforcement, investigations, or related administrative activities. (The title confirms an appropriation but the bill text is needed for the amount and budgetary details.)

Who is affected

  • Health care providers and suppliers who bill Medicaid (including clinics, hospitals, nursing homes, home‑ and community‑based service providers, managed care organizations).
  • Recipients of Medicaid benefits (indirectly, through program integrity and potential changes to fraud‑prevention practices).
  • The Minnesota Attorney General’s Office (expanded investigative/enforcement role).
  • Department of Human Services and other state agencies involved in Medicaid administration and oversight.
  • Whistleblowers and private relators if the bill expands civil qui tam or whistleblower rights.

Procedural / timeline notes

  • Introduced 3/13/2025 and referred to Public Safety Finance and Policy.
  • Multiple committee actions in March–April 2025, including re‑referrals to several finance and policy committees (Public Safety; Human Services Finance and Policy; Judiciary Finance and Civil Law; State Government Finance and Policy).
  • Committee reports indicate the bill was amended in committee and re‑referred several times.
  • Author added Bierman on 4/24/2025.
  • Next steps: floor consideration in the originating chamber and conference/negotiations with companion SF 2689 as the bill advances.

Fiscal and policy considerations

  • Implementation will have administrative costs (investigations, prosecutions, legal expenses) offset potentially by recoveries from fraud judgments/settlements. Exact net fiscal impact depends on appropriation amounts and enforcement outcomes (not provided here).
  • Policy trade‑offs include balancing stronger enforcement and deterrence with due process safeguards, provider compliance burden, and the potential for increased litigation.

Where to find the full text and updates

For exact statutory language, penalty amounts, and appropriation figures, consult the official bill text and amendments on the Minnesota Legislature website (search HF 2354 / session 2025) or follow committee hearings and fiscal notes as the bill moves through the Legislature.

Compiled from official sources — confirm details with the bill’s official record.

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