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Minnesota DHS Halts Payments to 11 Integrated Community Supports Providers Over Credible Fraud Allegations

The action reflects a data-driven push targeting organized provider schemes across Medicaid programs.

Overview

  • Payments to 11 ICS providers were withheld between Sept. 4 and Sept. 23, and the withholds extended to 17 affiliated providers in other services.
  • DHS says the allegations primarily involve providers billing for services that clients did not receive.
  • Officials describe the payment withholds as temporary during ongoing investigations, with a reconsideration process available to affected providers.
  • State staff are coordinating with counties and waiver case managers to help impacted clients select alternative services and providers.
  • The moves follow federal indictments in the Housing Stabilization Services case and a separate EIDBI wire-fraud charge tied in an indictment to Feeding Our Future, alongside new state anti-kickback rules now in effect.