Suspension of medical assistance payments during investigation of kickback fraud permitted, and rulemaking required to include kickbacks in the definition of fraud.

This bill allows Minnesota's Department of Human Services to temporarily stop medical assistance payments to providers while investigating allegations of kickback fraud, without requiring prior notice or a hearing. It expands the state's definition of fraud to explicitly include illegal kickbacks and requires the department to update its rules to reflect this change. The legislation also mandates that providers receive written notice within five days of any payment suspension, explaining the general reasons while protecting ongoing investigation details, and outlines procedures for appealing the decision. Additionally, the bill authorizes the department to impose fines for incomplete documentation and requires forfeited payments to go to the state or managed care organizations when fraud is proven.