Trump administration defers $91M more in Minnesota Medicaid funding citing fraud vulnerabilities
CMS said $76 million is tied to high-risk service categories and another $14 million involves payments for ineligible individuals.
- On Thursday, the Trump Administration notified Minnesota of an additional $91 million in Medicaid funding deferrals, citing fresh concerns about fraud vulnerabilities in state-run social service programs.
- Medicaid Administrator Mehmet Oz stated the deferral follows a "pattern we can't ignore" of issues, citing the "Learing Center" scandal and recent Department of Justice actions involving childcare centers.
- Of this latest tranche, $76 million targets 14 service categories deemed highly vulnerable to fraud, while $14 million addresses program integrity concerns including payments for ineligible individuals.
- Governor Tim Walz denounced the action as a "transparent effort to cut funding" for working people and hospitals, while the Minnesota Hospital Association reports 30% of state hospitals are losing money annually.
- Separately, the Minnesota Senate earmarked hundreds of millions on Wednesday to stabilize struggling hospitals amid looming federal Medicaid changes under the "One Big Beautiful" bill, pending Minnesota House approval.
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Trump administration defers $91M more in Minnesota Medicaid funds citing fraud vulnerability
The Trump administration on Thursday notified Minnesota that it’s deferring an additional $91 million in Medicaid funding, due to fresh concerns about vulnerabilities to fraud in state-run but federally funded
Medicaid withholding additional $91M in funding for Minnesota...
In his latest action targeting Minnesota fraud, Dr. Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services, said his agency would delay paying $91 million in Medicaid claims to the state. "This is about protecting patients and respecting taxpayers," Oz said in a video posted April 30 on X, announcing the decision. The money being withheld includes "$76 million tied to 14 service categories highly vulnerable to fraud," Oz wrote…
Dr. Oz freezes an additional $91 million in federal Medicaid funding for Minnesota
The Centers for Medicare and Medicaid Services has moved to defer an additional $91 million in federal Medicaid funding to Minnesota, escalating a dispute over alleged fraud and oversight failures in the state’s health programs. In a video announcement, CMS Administrator Dr. Mehmet Oz said the agency notified Gov. Tim Walz (D-MN) and state officials of the funding freeze following what he described as “serious red flags” in Minnesota’s administ…
Medicaid Withholds Additional $91 Million in Funding for Minnesota
In his latest action targeting Minnesota fraud, Dr. Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services, said his agency would delay paying $91 million in Medicaid claims to the state. “This is about protecting patients and respecting taxpayers,” Oz said in a video posted April 30 on X, announcing the decision. The money being withheld includes “$76 million tied to 14 service categories highly vulnerable to fraud,” Oz wrote…
Dr. Oz: $91 Million More in Minn. Medicaid Funds Deferred
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