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Rasmusson Reacts to New DHS Audit Report Showing Failure to Investigate Kickback Schemes

By Derek Sidian Mar 18, 2026 | 9:51 AM

(Senator Rasmusson’s Office)

St. Paul, MN – On Tuesday, the Office of the Legislative Auditor (OLA) released a special review of the Department of Human Services’ work investigating the Early Intensive Developmental and Behavioral Intervention (EIDBI) Program for allegations of kickbacks.

The report noted several findings, including the failure of the Inspector General at DHS to pursue investigations into allegations of kickback schemes when the complaint was centered solely around kickbacks.

Senator Jordan Rasmusson (R-Fergus Falls), Republican lead of the Senate Human Services Committee, says that despite having the legal authority to stop kickbacks, the DHS knowingly allowed the program to be defrauded. “The Department of Human Services knew about potential kickbacks in autism services and chose to ignore this theft from taxpayers,” Rasmusson said. “This OLA report provides another example of Minnesota Democrats failing to protect taxpayers and the Minnesotans who rely on these services.”

The OLA Report says that three complaints of kickback allegations were closed without investigation because DHS claimed it lacked authority to investigate only kickback allegations. These cases were not flagged for future investigation or referred to another entity to investigate fraud.

OLA also found that MN Statutes has long authorized DHS to impose sanctions for kickbacks, but DHS’s administrative rules have – for decades – contained an error in the definition of “fraud” that limits authority.

The number of EIDBI providers more than tripled from 2020 to 2024. The number of individuals receiving these services more than tripled from 1,400 in 2020 to 5,600 in 2024. The total cost of the EIDBI program has grown from $38.1 million in 2020 to $324.9 million in 2024.

The full review can be read here.

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