CMS blocks $112M in Medicaid funding to Minnesota
The federal agency said documentation problems justified rejecting claims tied to high-risk services, while Minnesota officials question the review process and calculation.
- The Centers for Medicare and Medicaid Services denied Minnesota more than $112 million in Medicaid reimbursements for the quarter ending Sept. 30, 2025, a permanent disallowance affecting more than 1 million state residents.
- CMS cited administrative documentation deficiencies including missing or incomplete signatures, dates, and addresses in billing records as the basis for rejecting the claims, though the denied amount is roughly 1,000 times greater than initial state estimates.
- Minnesota Department of Human Services Commissioner John Connolly noted CMS selected 330 claims from more than 6 million high-risk entries for review, raising state concerns about the selection methodology and disallowance calculation.
- CMS now holds $550 million in frozen Medicaid funds since the initial $259 million deferral, with an additional $350 million in funding freezes pending for subsequent quarters, exacerbating uncertainty.
- Minnesota officials criticized CMS for lacking transparency and failing to respond to multiple information requests, while DHS reviews a letter received late last week to determine whether to challenge the permanent disallowance.
4 Articles
4 Articles
Feds block nearly $113 million to Minnesota amid fraud concerns
MINNEAPOLIS — The Trump administration does not plan to reimburse Minnesota for nearly $113 million the state spent on Medicaid services deemed a fraud risk. It’s the latest in a series of actions the federal government has taken to withhold…
CMS blocks $112M in Medicaid funding to Minnesota
Presented by CareQuest {beacon} Healthcare Healthcare The Big Story CMS blocks $112M in Medicaid funding to Minnesota The Trump administration is cutting off more than $112 million in federal funding to Minnesota over “unallowable claims,” the most recent escalation in the White House’s fight over Medicaid fraud in the state. © Adobe Stock The administration…
Trump administration denies Minnesota more than $112M in Medicaid reimbursements
Minnesota Department of Human Services temporary Commissioner John Connolly stated that DHS is still reviewing a letter received from CMS late Friday and currently has more questions than answers regarding the federal agency's decision.
Coverage Details
Bias Distribution
- 75% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
