Koran: DHS falsely claimed it lacked authority to investigate kickbacks in autism program

The Office of the Legislative (OLA) today 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 DHS Inspector General to pursue investigations into allegations of kickback schemes when the complaint was centered solely around kickbacks.

Senator Mark Koran (R–North Branch) issued the following statement.

“DHS falsely claimed it didn’t have the legal authority to investigate kickback schemes in the autism program, which is either a terrible excuse or willful incompetence,” said Sen. Koran. “The cost per recipient in autism services more than doubled in four years. Not only did DHS ignore the explosive growth red flags, but they also ignored the reported kickback schemes and didn’t even refer them for further criminal investigation. This is just more of the same from DHS.”

Key findings include:

  • DHS’s administrative rules have – for decades – contained an error in the definition of “fraud” that limits authority.
  • Regardless of legislative changes in 2025, MN Statutes has long authorized DHS to impose sanctions for kickbacks.
  • 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 total EIDBI providers grew almost 400%from 2020 to 2024
    • Individual providers rose from under 3,000 in 2020 to 14,500 in 2024
    • Agency providers grew from 150 in 2020 to over 500 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.
    • Cost per EIDBI recipient grew from $27,214 in 2020 to $58,018 in 2024, a 113% increase

The full review can be read here.