Having trouble viewing this email? View it as a Web page.  March 13, 2026 Dear Friends & Neighbors, I hope you were able to enjoy the wonderful weather last weekend! It sounds like winter could be back on Sunday – I hope you all stay safe and get one more round of skiing or snowshoeing in for the season! ?? With only two weeks to go before the legislature hits its first and second committee deadlines, our House committees are working quickly to debate as many proposals as they can. A bill must pass out of Committee prior to the deadlines to ensure it can continue to move forward through the rest of our legislative session. Executive Summary- DHS IGNORING ACCOUNTABILTY OVER WHISTLEBLOWER COMPLAINTS
- GOVERNOR WALZ’S PLAN TO CENTRALIZE AUTHORITY OVER MEDICAID AT DHS
- DEMOCRATS BLOCK SMALL BUSINESS TAX RELIEF
- PHOTOS
DHS IGNORING STATE LAW AND REFUSING ACCOUNTABILITY OVER WHISTLEBLOWER COMPLAINTSWe heard very interesting testimony in this week’s House Fraud Prevention and State Agency Oversight Policy Committee hearing from a Department of Human Services (DHS) whistleblower and Judge Tim O’Malley, who was appointed last fall as Governor Walz’s new Director of Program Integrity. Unfortunately, no one from DHS thought it was important enough to show up to respond to the whistleblower’s testimony or to answer questions about Judge O’Malley’s recommendations in his report, “The Roadmap to Program Integrity and Fraud Prevention.” Their refusal to be available for questions in our hearing was even more frustrating when they appeared a few minutes after we gaveled out to appear before the Ways & Means Committee in the same hearing room. They refused to answer questions for us, but came to the next hearing to ask for more taxpayer money. I couldn’t believe it! Faye Bernstein, a brave whistleblower who is still employed by DHS, came forward publicly to share her experience of being retaliated against for raising questions about how contracts were managed by DHS’s Behavior Health Division. Faye raised her concerns seven years ago and was promptly escorted out of the department and refused entry to any DHS property while an investigation was conducted into her job performance, not the concerns she raised. After a months-long investigation in which she was smeared and retaliated against, she was eventually reinstated because it was determined none of the allegations leveled against her by agency officials were true. Although she was eventually cleared by the investigation, Ms. Bernstein was subjected to unnecessary stress and great personal cost to her career, health and reputation. We all owe a debt of gratitude to Ms. Bernstein and the other whistleblowers who courageously speak out to help stop fraud and protect taxpayers and vulnerable citizens. Judge Tim O’Malley was appointed by Governor Walz last fall to lead the Administration’s fraud prevention efforts for the rest of Governor Walz’s term. He testified that he began his investigation in January and issued his report and recommendations on February 23, 2026. The O’Malley report had many specific, practical recommendations to reform DHS, including changing the culture that enables fraud by retaliating against whistleblowers and prioritizing “compassion” over “compliance.” The report also recommended DHS participating in public hearings before a new Executive Branch Compliance Committee. While I agree with many, but not all, of the O’Malley Report recommendations, it is clear that DHS could take many steps immediately to begin necessary reforms to change culture and increase internal controls over taxpayer’s money. By making the conscious decision to boycott this hearing, it’s clear there has been no culture change in DHS. A second portion of the hearing was focused on how DHS is currently in violation of a state law that requires periodic data matching to ensure those receiving Medicaid and Medical Assistance are still eligible for the program. This periodic data matching is required under law and also requires an annual report to the Legislature about the number of people that have found to be ineligible and disenrolled. DHS produced the reports in 2019 and 2020, but the program was temporarily suspended during the Public Health Emergency for COVID. The periodic data matching was supposed to resume in 2023, however, and the reports for 2024 and 2025 still have not been produced, which is a clear violation of law. Former House Speaker Kurt Daudt, who had authored the original legislation, testified about the intent of the bill and the statutory requirements that DHS is violating. Of course, since DHS refused to attend the hearing, they did not have to answer the many questions raised about this program and the missing reports. Stay tuned. GOVERNOR WALZ'S PLAN TO CENTRALIZE AUTHORITY OVER MEDICAID AT DHSDespite billions in tax dollars being stolen from state taxpayers due to fraud that has gone unchecked by the Department of Human Services (DHS) for years, Governor Walz has unveiled plans to centralize control over Medicaid spending inside the DHS. While I agree with the Governor’s suggestion to modernize technology used by state agencies and counties to provide social services programs, I am opposed to centralizing responsibility for 100% of Medicaid services at the agency that has allowed fraud in this state to run rampant for years. Currently, eight non-profit Managed Care Organizations (MCOs) provide coverage for 80% of those on Medical Assistance (Medicaid) and Medicare in the state. Each MCO has a Special Investigative Unit (SIU) which has forensic accountants and professional fraud investigators, who use the data analytic tools the state is hoping to acquire, to flag fraud. We absolutely need to prioritize upgrading technology this session. That is a critical component of fighting fraud, and the state is woefully behind on this. Getting that piece done this session would make a material difference in stopping fraud. Taking Managed Care Organizations (MCO’s) out of providing Medicaid coverage is the exact wrong direction. MCO’s have flagged fraud and notified DHS and the Attorney General’s Medicaid Fraud Control Unit for years. They report either getting no response from DHS or the Attorney General, or being told they had to continue using providers about which they had raised concerns. MCO’s are already doing what the state aspires to do in the fee-for-service programs they manage. The recent Optum report, which flagged 90% of the autism centers managed in the fee-for-service program, illustrated that DHS has not had a good track record in finding fraud and stopping payments. Why would we possibly want to centralize 80% more of our Medicaid program at DHS? DHS should undertake the critical reforms outlined by Judge O’Malley in his ‘Roadmap to Program Integrity’ report and prove they can manage their current portfolio of 20% of the Medicaid population in the fee-for-service program before any consideration is given to ending the role of the MCOs. DHS already has dozens of steps they can and must take to stop fraud. The three most important are establishing a culture of compliance and accountability, standardizing internal controls and supporting, not retaliating against, whistleblowers. Without those internal changes at DHS being undertaken first, we will only be adding fuel to the raging fire of fraud by giving DHS 100% responsibility for all Medicaid programs and payments. DHS must earn the Legislature’s and the public’s trust by getting the basics right as outlined in Judge O’Malley’s report. In addition, DHS needs to actually respond to whistleblowers, including MCO’s, who flag fraud and try to stop payments. I look forward to continuing to work with DHS to stop fraud and ensure our citizens get the service they deserve. We should get the state and county’s technology systems up to date this session, which will be a tremendous help in the battle against fraud. We should not take MCO’s out of the picture – they are currently the front line of defense, finding and stopping fraud on the front end. Click here to learn more. DEMOCRATS BLOCK SMALL BUSINESS TAX RELIEFThe pass-through entity tax allows small and medium sized business owners to receive a deduction on federal taxes, which saves them thousands of dollars but doesn’t cost the state a penny. Minnesota’s business owners have utilized this “Pass Through Entity Tax” deduction for years, but it is expiring. In order for businesses to be able to take it for 2025, we need to pass this “conformity” bill by March 15th. Unfortunately, Democrats are refusing to pass it – wanting to “hold it” for a bargaining chip at the end of session. Instead of doing the right thing and ensuring we get this done in time to help small businesses, they want to use it as leverage. We tried to move the proposal forward in our House taxes committee this week, and every Democrat voted it down. Shortly after their vote, Democrats had the audacity to suggest the committee is doing nothing for small businesses. I was more than happy to address their hypocrisy, as you’ll see here. PHOTOS It was great to see so many friends from the Northwest Trails Association at the Minnesota United Snowmobilers Association event.  I visited with many city officials in St. Paul this week. Thanks to the mayors, city council members, and city administrators from Corcoran  Maple Grove  and Maple Plain for advocating for our communities! Please Contact MeMany of you have already been in touch to discuss your thoughts on the issues that matter most to you. Thank you for sharing your ideas! Please continue to contact me to discuss any matters to which I can be of assistance. The best way to reach me is by email: rep.kristin.robbins@house.mn.gov. For occasional updates, you can follow my Facebook Page at @RepKristinRobbins. You can also leave a voicemail on my office number, 651-296-7806, which is checked every weekday while we are in session. Of course, if you are coming to the Capitol, I’d love to meet you! Please reach out if you would like to set-up an in-person meeting. Have a great weekend!  Kristin /RepKristinRobbins 239 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, MN 55155
ph: 651.296.7806 |