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Minnesota Halts New Disability Services Licenses for Two Years

Officials say provider licenses have far outpaced demand.

Overview

  • The Department of Human Services will impose a moratorium starting in January that cancels pending Home and Community‑Based Services license applications and stops new applications or service additions.
  • DHS cited data showing 2,549 active licenses and 2,314 pending applications, with recipients up 25% over five years versus a 55% rise in annual licenses and a 283% jump in new applications.
  • The pause follows heightened anti‑fraud efforts, including a governor‑ordered audit of 14 Medicaid programs after major prosecutions such as the Feeding Our Future case.
  • Integrated Community Supports are affected, and attorneys report clients losing services after DHS paused payments to some ICS providers under investigation.
  • Providers and advocates say they were blindsided and warn of disruptions, while DHS says an exception process will be available through counties, tribal nations and case managers.