This week the Office of the Legislative Auditor released a financial audit report reviewing the Minnesota Department of Human Services’ outstanding provider debt in Minnesota’s Medicaid program. The report had a number of findings, including that DHS “did not comply with the significant finance-related legal requirements we tested and generally had inadequate internal controls” and did not attempt to recover more than $40 million – a conservative estimate – in overpayments to Medical Assistance providers. The report also states DHS “has not accurately reported its accounts receivable balance to Minnesota Management and Budget for inclusion in the state’s financial statements since 2019.”

“This is yet another example of waste under the Walz Administration and the Democrat trifecta,” said Senator Jeff Howe (R-Rockville). “The Department of Human Services is one of the largest areas of our budget, and they can afford to have oversight and transparency, yet they continually fail to do so. Minnesota taxpayers should not be left footing the bill for these continued ‘inadequate internal controls’ that lead to millions in waste.

“What’s even more troubling is that the majority of this audit focused on long-term care facilities, and those are the ones that need our help the most. Through no fault of their own, they have been the subject of these overpayments, and now the OLA is suggesting the legislature and DHS work to form a plan to recover these funds. This situation will do nothing but hurt the providers who have been struggling with staffing issues, crowded facilities, and more. This entire situation could have been avoided with proper oversight and accountability, and now long-term care facilities will be on the hook for something outside of their control.

“Minnesota families deserve better. We are already looking at a massive budget shortfall in the near future, and Minnesotans are tired of repeated tax hikes that cover government waste and overspending. The Walz Administration and Democrats need to be held accountable for failing to hold state agencies and commissioners accountable. Under Tim Walz, there has already been over $1 billion in waste, fraud, and overspending, and this is just another drop in that bucket. With a $5.1 billion shortfall on the horizon, these are financial mistakes our state cannot afford to make.”