as introduced - 87th Legislature (2011 - 2012) Posted on 03/10/2011 10:03am
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:
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(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:
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(1) implement a more comprehensive, robust, and technologically advanced
improper payments identification program;
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(2) utilize state of the art fraud detection methods and technologies such as predictive
modeling, link analysis, and anomaly or outlier detection;
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(3) have the ability to identify and report improper payments before the payments
are made;
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(4) include a mechanism so that the system improves its detection capabilities over
time;
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(5) leverage technology to make the payment evaluation process more transparent
and cost-efficient; and
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(6) result in increased savings by reducing or eliminating wrongful payments.
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(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.
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This section is effective the day following final enactment.
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