Overview

• DHS sent a letter to the federal Centers for Medicare and Medicaid Services requesting approval to terminate the Housing Stabilization Services benefit.
• DHS has withheld payments from 77 providers based on credible accusations of billing fraud, with 11 new suspensions applied this week.
• FBI agents conducted raids on five program providers in July after search warrant affidavits revealed billing for unrendered services.
• The benefit’s expenditures climbed from an anticipated $2.6 million annually at launch to more than $107 million in Medicaid payments in 2024.
• DHS plans to collaborate with the Legislature, service providers and federal regulators to relaunch the program with enhanced integrity and quality safeguards.