HF 1116

as introduced - 87th Legislature (2011 - 2012) Posted on 03/14/2011 11:06am

A bill for an act
relating to state government; requiring the commissioner of human services to
issue a request for proposals for a public assistance fraud detection and business
intelligence contract.

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 human services shall issue a request for proposals
for a contract to use technologically advanced software and services to improve the
identification and rejection of improper public assistance payments before payment is
made to the recipient or provider. 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 claims before the claims are paid;
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 claims evaluation and payment process more
transparent and cost-efficient; and
new text end

new text begin (6) result in increased state savings by reducing or eliminating payouts of wrongful
claims and payment.
new text end

new text begin (b) For purposes of this section, "public assistance payments" are payments made
through MFIP, general assistance, food support, SSI, Minnesota supplemental aid, child
care assistance, medical assistance, and MinnesotaCare.
new text end

new text begin (c) 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