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As Lawmakers Debate Anti-Fraud Measures, Rep. Liebling Proposes Removing Insurers From State Health Programs

Removing managed care organizations, Liebling's bill was refiled as SF 3612 on Thursday night, as the Minnesota Legislature began that evening.
Because audits initially excluded managed care organization claims, the Minnesota Department of Human Services plans to expand the prepayment audit to include MCO claims, according to officials.
The bill would shift claims processing to a state-contracted ASO, with DHS hiring it to handle claims without managing fraud detection, which Liebling questioned about MCOs' fraud handling.
Liebling expects pushback from health insurers and health care providers, noting reimbursements can be higher under MCO plans and warning fragmented systems complicate tracking and prompt rate reviews.
She pressed on how much fraud managed care organizations have uncovered and questioned `What do they do when they find it?`, citing fraud concerns and the timing as key issues, according to Liebling.

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As lawmakers debate anti-fraud measures, Rep. Liebling proposes removing insurers from state health programs

ST. PAUL — Fraud is one of state lawmakers’ top issues going into the Minnesota Legislature’s 2026 session, which began Tuesday, Feb. 17. Rochester’s Rep. Tina Liebling, a DFLer, has one suggestion: remove managed care organizations from Minnesota’s public health programs, which include Medicaid, or Medical Assistance, and MinnesotaCare. “The more complicated you make your systems, and the more you spin off pieces of it here, there and everywher…

2 days ago·Cherokee County, United States

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