The Office of the Legislative Auditor (OLA) this week released a special review of the Department of Human Services work investigating Early Intensive Developmental and Behavioral Intervention (EIDBI) Program for allegations of kickbacks.

 

The report noted several findings, including the failure of the Inspector General at DHS to pursue investigations into allegations of kickback schemes when the complaint was centered solely around kickbacks.

“This is another clear example of the total lack of interest DHS has in protecting taxpayer funds,” said Senator Paul Utke (R-Park Rapids). “Our state has been inundated with fraud to the tune of about $9 billion, much of which is a direct result of DHS’s inadequacy. This report shows the Department was aware about potential kickbacks, yet they failed to act. And this newest OLA report makes it even more clear that the agency is failing in just about every way possible. Yet Democrats are still ignoring the issue at hand and shutting down the fraud discussion every time it occurs in committees or on the floor. It’s shameful and our state deserves better.”

Findings in the report include the following: 

• Regardless of legislative changes in 2025, MN Statutes has long authorized DHS to impose sanctions for kickbacks.
• DHS’s administrative rules have – for decades – contained an error in the definition of “fraud” that limits authority.
• Until fraud is defined in administrative rule or applicable state law includes kickbacks, it is unclear if DHS has the legal authority to suspend payments to a MA provider while investigating credible allegations of kickbacks alone. (p. 2)
• Three complaints of kickback allegations were closed without investigation because DHS claimed it lacked authority to investigate only kickback allegations. (p. 8).  These cases were not flagged for future investigation or referred to another entity to investigate fraud in MA.

EIDBI Growth:

• The number of providers more than tripled from 2020 to 2024
• The number of individuals receiving services more than tripled from 1,400 in 2020 to 5,600 in 2024.
• The total cost of the EIDBI program has grown from $38.1 million in 2020 to $324.9 million in 2024. (p.4) This represents a 753% increase in costs.

“This report has just made it all the more clear: the legislature must hold immediate hearings regarding Commissioner Gandhi’s ability to oversee this fraud-ridden state agency. Democrats have shown zero willingness to acknowledge the fraud or even have a discussion about it. Minnesotans are demanding action and the time to act is now,” finished Utke.