Bill Text: MN HF1038 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Department of Labor and Industry required to issue a proposal request for a contract to reduce improper workers' compensation payments.
Sponsorship: Partisan Bill (Republican 2)
Status: (Introduced - Dead) 2011-03-10 - Introduction and first reading, referred to Jobs and Economic Development Finance [HF1038 Detail]
Download: Minnesota-2011-HF1038-Introduced.html
1.2relating to state government; requiring the Department of Labor and Industry
1.3to issue a request for proposals for a contract to reduce improper workers'
1.4compensation payments.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. REQUEST FOR PROPOSALS.
1.7(a) The commissioner of labor and industry shall issue a request for proposals
1.8for a contract to use technologically advanced software and services to improve the
1.9identification and rejection of improper payments in the workers' compensation system.
1.10The request for proposals must ensure that a system recommended and implemented by
1.11the contractor will:
1.12(1) implement a more comprehensive, robust, and technologically advanced
1.13improper payments identification program;
1.14(2) utilize state of the art fraud detection methods and technologies such as predictive
1.15modeling, link analysis, and anomaly or outlier detection;
1.16(3) have the ability to identify and report improper payments before the payments
1.17are made;
1.18(4) include a mechanism so that the system improves its detection capabilities over
1.19time;
1.20(5) leverage technology to make the payment evaluation process more transparent
1.21and cost-efficient; and
1.22(6) result in increased savings by reducing or eliminating wrongful payments.
1.23(b) Based on responses to the request for proposal, the commissioner must enter into
1.24a contract for the services specified in paragraph (a) by October 1, 2011. The contract
2.1shall incorporate a performance-based vendor financing option whereby the vendor shares
2.2in the risk of the project's success.
2.3EFFECTIVE DATE.This section is effective the day following final enactment.
1.3to issue a request for proposals for a contract to reduce improper workers'
1.4compensation payments.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. REQUEST FOR PROPOSALS.
1.7(a) The commissioner of labor and industry shall issue a request for proposals
1.8for a contract to use technologically advanced software and services to improve the
1.9identification and rejection of improper payments in the workers' compensation system.
1.10The request for proposals must ensure that a system recommended and implemented by
1.11the contractor will:
1.12(1) implement a more comprehensive, robust, and technologically advanced
1.13improper payments identification program;
1.14(2) utilize state of the art fraud detection methods and technologies such as predictive
1.15modeling, link analysis, and anomaly or outlier detection;
1.16(3) have the ability to identify and report improper payments before the payments
1.17are made;
1.18(4) include a mechanism so that the system improves its detection capabilities over
1.19time;
1.20(5) leverage technology to make the payment evaluation process more transparent
1.21and cost-efficient; and
1.22(6) result in increased savings by reducing or eliminating wrongful payments.
1.23(b) Based on responses to the request for proposal, the commissioner must enter into
1.24a contract for the services specified in paragraph (a) by October 1, 2011. The contract
2.1shall incorporate a performance-based vendor financing option whereby the vendor shares
2.2in the risk of the project's success.
2.3EFFECTIVE DATE.This section is effective the day following final enactment.
