ST. PAUL, Minn. (GRAY) – Minnesota Governor Tim Walz proposed an ambitious overhaul of the state’s human services system in an effort to centralize state service responsibilities.
The move comes as the governor’s administration is looking to build back public trust after a series of fraud schemes garnered national attention several months ago.
The governor’s proposal would eliminate partnerships with Managed Care Organizations, or MCOs, in favor of centralizing Medicaid determinations under the Minnesota Department of Human Services.
Currently, the state works with MCOs to handle Medicaid determinations. The organizations, often counties or insurers, are allowed to make those determinations on services that utilize state money.
Walz’s proposal would decouple MCO’s from those determinations. Instead, the state’s Department of Human Services would oversee all determinations in a more centralized structure.
“What that does is takes the burden off the counties, the managed care organizations, and gives the state and the taxpayers a much more transparent view of how the system works,” said Walz.
The proposal is already receiving pushback from members of the legislature. It would need legislative approval to fully implement.
Representative Paul Torkelson (R-Hanska) indicated the bill may be “dead-on-arrival.” He and other Republicans are concerned about centralizing state payments under DHS as the agency seeks to rebuild public trust.
DHS is responsible for distributing the money for several programs that became hotbeds for fraud.
“To give [DHS] more responsibility puts them in a place where they will not be able to do what they need to do to recover their integrity,” Torkelson said.
Even DFLers, like Senate Human Services Chair Sen. John Hoffman (DFL-Champlin), seem to have reservations with the proposal.
In a statement, Hoffman indicated that he’d only been made aware of the proposal on Monday night, and that he feels a major overhaul like this requires thoughtful consideration:
“As Chair of the Senate Human Services Committee, I was disappointed to learn about this proposal just last night without a thorough conversation with the committee that has primary jurisdiction over Minnesota’s human services system.
“The Human Services Committee has spent years working on program integrity, improving service delivery, and strengthening accountability within Medicaid and our broader human services programs.
“Major structural changes to a system that serves hundreds of thousands of Minnesotans require thoughtful collaboration between the executive branch and the Legislature. The Senate Human Services Committee exists specifically to examine these types of proposals, hear from stakeholders, and ensure reforms are implemented responsibly.
“Moving forward, I hope the administration will engage directly with the Legislature so we can work together to improve outcomes, strengthen accountability, and protect the people who depend on Minnesota’s human services programs.”
The governor’s proposal comes just a few weeks ahead of the first legislative committee deadline. By March 27, committees need to have “acted favorably” on any bill for it to continue moving forward.
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