Minnesota Gov. Tim Walz has proposed a plan that will see the state take over the handling of Medicaid funds.
But Walz’s plan places the state agency that allowed the million-dollar healthcare fraud scandal in charge of overseeing the funds the Washington Examiner reported.
The Minnesota Department of Human Services, which would oversee the fund, is currently being investigated over the fraud scandal.
Walz’s proposal is a centralized approach to combating fraud, by consolidating all Medicaid billing under a fee-for-service model through which the state directly pays providers for services rendered, the Examiner reported.
Minnesota’s current plan involves contracting with insurance companies to pay out Medicaid claims.
The private insurers handle more than 80% of the state’s Medicaid benefits, the Examiner said.
The governor’s proposal would also see DHS determine who is eligible to enroll in Medicaid, rather than the state’s 87 counties, the Examiner said.
Walz argued the old system was antiquated and that his proposal would streamline the system.
"We think this is a way of simplification," Walz said.
"It’s a way to use best practices, AI, and what that does is take the burden off the counties, the managed care organizations.
"And that gives the state and the taxpayers a much more transparent view on how the system works," Walz said.
"It’s antiquated computer systems. It’s decentralized control," he continued.
The project is estimated to cost $72 million, Fox 9 reported.
Walz’s proposal received pushback from state lawmakers on both sides of the aisle.
"To put more responsibility on a state agency that acts irresponsibly, to me, is just a very stark, bad idea," Republican state Rep. Paul Torkelson said.
State Sen. John Hoffman, a Democrat, blasted Walz for not collaborating with the legislature on the project.
"I was disappointed to learn about this proposal just last night without a thorough conversation with the committee that has primary jurisdiction over Minnesota’s human services system," Hoffman said.
"Major structural changes to a system that serves hundreds of thousands of Minnesotans require thoughtful collaboration between the executive branch and the Legislature," Hoffman added.
"Moving forward, I hope the administration will engage directly with the Legislature so we can work together to improve outcomes, strengthen accountability, and protect the people who depend on Minnesota’s human services programs," Hoffman continued.
Sam Barron ✉
Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.
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