Overview
- Minnesota’s Department of Human Services filed an appeal of the federal decision and accused the administration of politicizing Medicaid in a letter to Administrator Mehmet Oz.
- CMS announced audits of the state’s quarterly Medicaid spending and will defer paying claims it flags for fraud, waste or abuse.
- Federal authorities identified 14 high‑risk programs with roughly $18 billion in billing since 2018, and a U.S. prosecutor estimated that half or more could be improper.
- State actions already in place include a third‑party audit, payment pauses of up to 90 days, and a six‑month enrollment moratorium for 13 programs considered highest risk.
- Minnesota officials warn the withheld funds could jeopardize care for more than 1 million residents, including about 600,000 children, and say CMS offered a hearing with a deadline later this month that the state has not yet agreed to.