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

“After $9 billion in alleged fraud, you would think DHS would take fraud more seriously, but failing to investigate potential kickbacks in a program they oversee demonstrates an astounding lack of awareness – these repeated actions are what has made Minnesota a breeding ground for fraud,” said Senator Eric Pratt (R-Prior Lake). “This report shows yet another DHS program experiencing many of the same symptoms that Housing Stabilization Services did before we found out about the fraud lurking there – this is unacceptable.”  

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.

“Minnesotans are tired of this – they are tired of being asked to pay more when then their hard-earned money is going to line the pockets of fraudsters. They want the legislature to act and hold all parties accountable so that fraud is no longer the average experience in our state. Yet at every turn, Democrats have shown an unwillingness to discuss fraud mitigation measures, nor have they wanted to discuss the DHS Commissioner’s poor job performance. This report is yet another red flag. We must act before bad actors can once again defraud our state,” finished Pratt.