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HF 1038

as introduced - 87th Legislature (2011 - 2012) Posted on 03/10/2011 10:03am

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
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Current Version - as introduced

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A bill for an act
 relating to state government; requiring the Department of Labor and Industry
to issue a request for proposals for a contract to reduce improper workers'
compensation payments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin REQUEST FOR PROPOSALS.
new text end

new text begin (a) The commissioner of labor and industry shall issue a request for proposals
for a contract to use technologically advanced software and services to improve the
identification and rejection of improper payments in the workers' compensation system.
The request for proposals must ensure that a system recommended and implemented by
the contractor will:
 new text end

new text begin (1) implement a more comprehensive, robust, and technologically advanced
improper payments identification program;
 new text end

new text begin (2) utilize state of the art fraud detection methods and technologies such as predictive
modeling, link analysis, and anomaly or outlier detection;
 new text end

new text begin (3) have the ability to identify and report improper payments before the payments
are made;
 new text end

new text begin (4) include a mechanism so that the system improves its detection capabilities over
time;
 new text end

new text begin (5) leverage technology to make the payment evaluation process more transparent
and cost-efficient; and
 new text end

new text begin (6) result in increased savings by reducing or eliminating wrongful payments.
 new text end

new text begin (b) Based on responses to the request for proposal, the commissioner must enter into
a contract for the services specified in paragraph (a) by October 1, 2011. The contract
shall incorporate a performance-based vendor financing option whereby the vendor shares
in the risk of the project's success.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end