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*Dear Neighbors, *

Happy Hanukkah and Merry Christmas to all who celebrate these holidays. Thursday night I had the privilege of joining my legislative colleagues for a Hanukkah celebration at Temple Beth El in St. Louis Park and I’m looking forward to celebrating Christmas this week.






Happy Hanukkah and Merry Christmas





My thoughts and prayers go out especially to our immigrant neighbors (and even those who merely look like immigrants) who are currently under continuous threat of harassment and detention under the Trump administration’s illegal and immoral immigration enforcement actions. If someone you know and love is being threatened by ICE, my State Senate colleagues have prepared this toolkit of informational resources [ [link removed] ] that will help them assert their legal rights.

I know that I’ve been a lousy correspondent this fall, but I’ve taken on an exceptional interim legislative workload. I’ll discuss a couple of the things I’ve been working on in this newsletter. I've had a lot on my plate!

 

*Fraud Prevention*

The issue of fraud in our Medicaid programs has been dominating the news cycle of late. At the beginning of the session I volunteered to serve on the House Fraud Prevention Committee [ [link removed] ], which continues to meet monthly between sessions. While most of what transpires in the actual Committee meetings is “Political Theatre” – can you think of any actual solutions that have been proposed? – my position on this committee has given me the opportunity to probe behind the scenes to understand why it has been so difficult to get this problem under control and come up with some solutions of my own. 

First, it's important to understand that “corrupt government officials” is not the problem. No state government employee has ever been charged with “being on the take” or in any way complicit in the commission of these frauds. The State and County employees who administer these programs are frustrated and embarrassed by these failures. Employees go into this line of work because they want to help people and they are resentful when fraudsters steal from taxpayers and program beneficiaries and undermine the good work that they are trying to accomplish. 

So why does this continue? The single biggest contributing factor is that the Department of Human Services (DHS), which governs these programs, and the Counties who are responsible for front-line delivery and administration of these services are working with antiquated and poorly integrated systems that date back as far as the 1980s. 

I wanted to understand this problem, so I made site visits to county service centers in Dakota and Ramsey counties to sit with the people who train new county caseworkers on the use of these systems. I came with a list of the 8 categories of information needed to properly evaluate an applicant’s eligibility to participate in these programs and wanted to find out how a county caseworker accesses the information required to process an application. Instead, much like Star Tribune columnist Jill Burcum [ [link removed] ], I learned that they don’t have access to *"any "*of this information. 

Perhaps the most pathetic example is access to basic employment and income data. The Minnesota Department of Employment and Economic Development (DEED) regularly collects complete payroll information from every employer in the state to support the State’s Unemployment Insurance program and stands prepared to provide DHS with a link to draw that information from its database on demand to evaluate an individual application. However, the 1980’s era MAXIS enrollment and eligibility system that is used to administer the cash benefit programs and Medicaid add-on programs at the heart of the worst frauds has never had an electronic interface for taking in data from other systems. Instead, county caseworkers must *manually *type data into an ancient “green screen” user interface from the applicant’s *paper paycheck stub*. If the applicant is applying for three programs, it must be keyed three times. If the applicant has provided information in advance through the DHS MNBenefits [ [link removed] ] portal, that information has to be printed out and re-keyed into MAXIS. Needless to say, this process is slow and error-prone and it's impossible to cross-check the information being entered against authoritative data from other systems. 






Outdated Data Entry





County caseworkers spend most of their time entering data when they’d much rather be helping their clients. Most county caseworkers burn out and quit their jobs before they’ve even completed their two-year training program. If you’re wondering why your County property taxes are increasing, the inefficiencies of this process are a big reason why, and with Congress now requiring Medicaid members to verify their work status and income multiple times each year, it's about to get much worse!

Because enrollment and eligibility processing for various DHS programs are split between MAXIS and a second system called METS, DHS has always had trouble keeping its consolidated client list straight [ [link removed] ]. This, in turn, makes it easy for fraudulent businesses to make up clients or register real clients in programs without the client’s knowledge or permission, a weakness that is at the heart of many of the worst fraud schemes. 

Because provider, client enrollment, and claims data from MAXIS, METS and MMIS, (the mainframe/COBOL system used to pay claims) are incompletely integrated in the 25 year-old DHS “data warehouse” that is used for analysis, it is difficult for analysts to make the correlations across client identifiers, providers, service address, and claims that are necessary to identify patterns of fraud that seem obvious in hindsight. 

It’s not going to be possible to correct these shortcomings overnight, but if one good thing comes out of the Fraud Committee’s work, it should be an executable plan to correct these shortcomings and legislative funding to see it through to completion. 

The plan will require a two stage process: First, stanch the bleeding from the current obsolete systems and then come back and build a new system from scratch, the right way on modern, flexible platforms "(Note: At any given time, DHS has a three to five year backlog of MAXIS programming changes that are needed to reflect changes in law and policy and, as a result, the State is frequently penalized by the feds for errors in program administration)."

To stanch the bleeding, Minnesota IT Services (MNIT) has already identified a couple of bolt-on enhancements to the current systems that would have an immediate impact. First, MNIT has determined that there *"are "*ways to enable the electronic ingestion of timely and accurate data into MAXIS from authoritative data sources like the DEED UI database, MNBenefits [ [link removed] ] and the “Federal Data Services Hub [ [link removed] ]”. This would eliminate most manual keying of data and dramatically improve the timeliness and accuracy of the data being entered into MAXIS. In connection with the adoption of this technology, DHS and MNIT need to rebuild the data highway connecting state systems (called an Enterprise Service Bus – we IT geeks are horrible at naming things!) so that DEED (and other agencies) can more easily transmit data among themselves. 

In addition, Hennepin County employees have identified a user-friendly graphical user interface for MAXIS that would make county caseworkers more productive for their remaining manual work. 

Next, MNIT has already implemented a “single sign-on” application called LoginMN [ [link removed] ] where Minnesota residents will be able to create a single, verified, online identity for themselves that can be used to sign into any state system (There is already a federal version called Login.gov [ [link removed] ] that is used to log in to programs like Social Security, Medicare, IRS and TSAPreCheck). LoginMN is now being implemented in connection with the State’s new Paid Family & Medical Leave program (PFML) (see below). Once proven as part of the PFML implementation, the required use of LoginMN by both providers and clients for these DHS programs should be a priority. With one verified name and address record for all program participants (both providers and clients) it would be next to impossible for fraudulent providers to invent clients or enroll clients in programs without their permission (only the clients, themselves, would be able to log in and enroll). 

Having a reliable online identity and consistent address information for each provider and each client would also make it much easier to identify correlations across programs, providers, clients, and addresses for fraud pattern detection in the DHS data warehouse. 

DHS leadership understands the need to adopt LoginMN, but the electronic interface for MAXIS must be in place before it can be implemented. 

These two system enhancements alone would enable a dramatic reduction in fraud in these programs.

Once the hemorrhaging has been stanched, DHS can proceed with its existing long term plan to replace its obsolete systems and processes. It’s called the Medicaid Enterprise Systems (MES) project [ [link removed] ]. It's ambitious, it’s refreshing, it’s well-grounded, and you can learn about it here [ [link removed] ].

In my next bulletin, I’ll discuss my thoughts about how the Inspector General function should be organized in state government. 

 

*Property Damage Insurance*

Between the 2025 and 2026 sessions, I’m serving on four interim study committees and chairing the one that is studying the rapidly rising cost of property insurance. In 2017 and again in 2022, Minnesota had three severe wind and hail storms that each generated over a billion dollars in property damage claims. Clearly, climate change is resulting in more frequent and severe weather events. Minnesota property and casualty insurers have suffered a cumulative net loss on their property insurance policies over the last decade. As a result, our homeowner’s insurance rates have gone up significantly. The impact has been especially severe for the owners of condominiums and apartment complexes, some of whom have had difficulty finding any insurance at all. 

Our task force has identified several factors that are aggravating these trends and we’ve been studying possible ways to reduce home damage, mitigate insurance costs, and improve insurance availability. In 2023, the legislature approved a program that would offer insurance rate discounts to homeowners who strengthen their roofs to “Fortified [ [link removed] ]” standards to better withstand wind and hail damage. The task force is poised to recommend that the state adopt related Minnesota-appropriate building code standards for new homes and provide financial incentives for retrofitting existing homes to such a standard so that we can move forward to implement this program. Pilot programs in Alabama and Oklahoma are demonstrating the cost-effectiveness of this approach. 

To address the unavailability of insurance for homeowners associations and older affordable housing complexes, we’re poised to recommend that the State’s FAIR plan [ [link removed] ], our insurer of last resort for homes, expand their back-up insurance program to cover these types of multi-family housing as well. 

The task force is also considering improvements to consumer protections and mediation processes governing the evaluation and processing of property damage claims, and is about to start considering the possible impact of tort claims on insurance rates. 

The task force will complete its work and issue its recommendations in a report that will be delivered to the Legislature before we reconvene in February. 

Note: There are signs that the market is stabilizing and some homeowners associations are actually seeing reductions in their insurance quotes for the coming year.

 

*Paid Family Medical Leave to Launch on January 1, 2026*

The U.S. is the only developed country in the world that doesn’t guarantee some form of paid leave, forcing most workers to make impossible choices between a paycheck and caring for a new child, an aging parent, or their own serious health condition. *But in Minnesota, that’s about to change with the launch of Paid Leave on January 1, 2026. *As we prepare for Paid Leave to take effect, I want to share a bit about the basics of the new law, how it impacts you, and how to use it when it goes live.

Paid Leave – which DFLers in the Legislature and Governor Walz passed in 2023 – provides partial wage replacement for up to 12 weeks of paid medical leave for your own serious health condition, including pregnancy and recovery. It also provides up to 12 weeks of paid family leave to care for a new child, a seriously ill loved one, or for certain military or safety-related events. If using both medical and family leave, workers can use up to a total of 20 weeks annually. A short video explaining the basics of how it works is available here:






Paid Leave Video [ [link removed] ]





The program will have a small cost, but offer powerful benefits. The premium rate for 2026 will be 0.88%, with employers responsible for at least half. If the employer chooses to split the premium with the employee, each will pay 0.44%. For an employee earning the average annual income, this amounts to about $5 per week each for the worker and the employer.

From a technical standpoint, Paid Leave is built on Minnesota’s Unemployment Insurance system, using already proven technology instead of a new system to help ensure a smooth rollout on day one. I have personally monitored implementation of the IT systems and I will take it personally if the program hiccups on January 1st. The program was built with the input from businesses, with employer feedback being incorporated, and the Minnesota Department of Employment and Economic Development (DEED) has been engaging with businesses across the state to help them prepare for the launch.

I attended a well-received PFML training session in Bloomington in October that was organized by DEED in cooperation with our Chamber of Commerce that was attended by upwards of 200 local businesses:






Chamber of Commerce





Input and feedback from businesses will be continually collected and the program will be refined and strengthened so it runs smoothly and stays reliable. Importantly, Paid Leave will level the playing field for small businesses that have wanted to offer this benefit so they can better compete to attract talent, but haven’t been able to do so in a sustainable way.

DEED has developed helpful toolkits with resources for workers and businesses alike. The toolkit for workers [ [link removed] ] can help you find out if you’re eligible for coverage, when Paid Leave can be used, how much time you can take, how you’ll be compensated, and more. The toolkit for businesses [ [link removed] ] includes info about upcoming public engagement events, information on premium rates and contributions, equivalent plans for Paid Leave, and other FAQs.

For many Minnesotans, missing a single paycheck means the difference between staying above water and facing dire financial challenges, and that’s particularly true considering the affordability crisis we’re facing now, with prices rising for just about everything in our daily lives. Paid Leave is one major step to provide some relief, ensuring you’ll no longer have to risk your economic security to look after yourself, care for a newborn, or tend to a loved one.

This program has truly been years in the making, and the enabling legislation was designed with implementability in mind. As we get closer to the program’s rollout, I encourage you to check out all of the resources available at pl.mn.gov [ [link removed] ].






Paid Leave Info




*Keep in Touch*

Don’t hesitate to reach out if I can provide any assistance. Please follow me on my Facebook page [ [link removed] ] for further updates and invite your friends and family to do so as well. 

Thanks for the honor of representing you at the Capitol. 

Sincerely, 

 

Steve Elkins

Representative, District 50B

Minnesota House of Representatives

[email protected]






State Representative Steve Elkins

5th Floor, Centennial Office Building
658 Cedar St.
Saint Paul, Minnesota 55155

Phone: 651-296-7803
Email: [email protected]" (replies to this newsletter are not monitored)"
Website: www.house.mn.gov/50B [ [link removed] ]







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