Senate Health and Human Services Committees on Wednesday held a joint hearing to gather testimony from Legislative Auditor Jim Nobles, Commissioner Jodi Harpstead, and tribal nations. Nobles gave a review of the Office of the Legislative Auditor’s (OLA) special report on the overpayments for opioid treatment, which was released Tuesday. The report found “troubling dysfunction” in DHS, with “serious financial and legal problems… that will be difficult to resolve,” regarding payments that were made at a higher rate than allowed.

“For the most part, Commissioner Harpstead said all the right things in yesterday’s hearing,” said Sen. Michelle Benson (R-Ham Lake), chair of the Senate Health and Human Services Finance and Policy Committee. “Acknowledging they made errors and need to clean up their processes is an important step. One issue on which I will continue to demand a straightforward answer, however, is what will happen when the federal government asks Minnesota to return the $29 million in overpayments. Will DHS attempt to bury it in a forecast adjustment? Or will they be open and upfront? If it’s the former, I will have serious problems. I will be watching carefully to make sure they follow through on their promises and their accounting for these illegal payments is transparent.”

The joint committee also received an update on a streamlined process for fraud reports on Child Care Assistance Program (CCAP) providers. In 2018, the same committee held joint hearings to learn more about millions of dollars of fraudulent payments made by DHS to providers for kids who did not receive childcare. In response to legislative requests, earlier this year the OLA released two special reports on the CCAP program, one recommending changes to internal controls for the program, and one to determine the amount of fraudulent payments.