MN SF2689

Creates new medical assistance fraud crime (section 609.467) with tiered penalties: up to 20 years imprisonment and $100,000 fine for fraud over $35,000; up to 10 years and $20,000 fine for fraud between $5,000-$35,000; up to 5 years and $10,000 fine for fraud under $5,000

Expands attorney general subpoena authority to obtain banking, credit card, financial records, wage and employment records, and insurance records related to Medicaid fraud investigations

Allows aggregation of fraudulent claims within any six-month period for charging purposes and permits prosecution in any county where an offense occurred or where the defrauded entity is located

Appropriates $390,750 per year in fiscal years 2026-2027 to the attorney general to combat medical assistance fraud, with ongoing base funding at the same level

Repeals existing section 609.466 (which treated medical assistance fraud as attempted theft) and replaces it with the new standalone fraud statute effective August 1, 2025