Legislative panel examines fraud and licensing in Minnesota's medical field

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A group of Minnesota lawmakers tasked with fraud prevention, looked into medical billing and regulations on Thursday.

Fox 9 reports that the group is looking at six issues regarding medical billing and regulations in the state. The areas legislators are focusing on include MRI/CT regulations, licensure for massage therapists, the corporate practice of medicine regulation and a practice where some patients who live in Minnesota use out of state addresses to reduce insurance costs.

The legislative hearing came just days after an Edina-based diagnostic imaging company and 46 chiropractors were accused in a federal lawsuit Monday of defrauding the state's no-fault auto insurance system by paying kickbacks to the providers who ordered unnecessary MRI tests conducted by Mobile Diagnostic Imaging Inc.

At nearly $2 million dollars, the lawsuit, filed by the Illinois Farmers Insurance Co. against MDI, its owner, and the chiropractors, is the largest no-fault lawsuit since the law was put in place in 1974.

The legislature is in recess until February, but the Associated Press reports, that some committees are holding hearings this fall to prepare for the session.

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