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Walz Orders Optum Audit of 14 High-Risk Medicaid Services, With Pre-Payment Holds Up to 90 Days

The move pivots Minnesota to front-end claim screening to target organized billing fraud.

Overview

  • State officials say only claims flagged by analytics will be held for review and payments will still comply with the federal 90‑day requirement.
  • The one‑year contract with Optum is valued at $2.3 million to analyze fee‑for‑service claims and identify irregularities before funds are released.
  • The high‑risk list includes autism EIDBI, Integrated Community Supports, Nonemergency Medical Transportation and Housing Stabilization Services.
  • Providers and families fear cash‑flow strains and service disruptions, and DHS issued follow‑up guidance after initial announcements caused confusion.
  • Flagged claims will be reviewed by DHS and referred to the department’s Office of Inspector General as needed, with added safeguards such as fingerprint background checks and unannounced site visits.