Particle.news
Download on the App Store
8 ARTICLES
·
5d ago

CMS Defers Additional $91 Million in Minnesota Medicaid Funds Over Fraud Risks

The move keeps more than a quarter‑billion dollars on hold pending proof of proper billing.

FILE - Administrator for the Centers for Medicare & Medicaid Services Dr. Mehmet Oz speaks during a news conference on efforts to combat fraud, in the Old Eisenhower Executive Office Building on the White House campus Feb. 25, 2026, in Washington. (AP Photo/Tom Brenner, File)
Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz attends an event on health care affordability in the Oval Office at the White House, Thursday, April 23, 2026, in Washington. (AP Photo/Mark Schiefelbein)
Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz speaks speaks during an event on health care affordability in the Oval Office at the White House, Thursday, April 23, 2026, in Washington. (AP Photo/Mark Schiefelbein)
FILE - Minnesota Gov. Tim Walz speaks during a House Committee on Oversight and Government Reform hearing on oversight of fraud and misuse of Federal funds in Minnesota, March 4, 2026, on Capitol Hill in Washington. (AP Photo/Rod Lamkey, Jr., File)

Overview

  • CMS deferred an additional $91 million in Minnesota Medicaid reimbursements on Thursday, citing fresh fraud vulnerabilities in state‑run programs.
  • The agency linked $76 million to 14 service categories it considers high risk and flagged about $14 million over program‑integrity issues following Tuesday’s federal searches at childcare and learning centers in the Twin Cities.
  • The new hold adds to roughly $243–$260 million withheld since February, which Minnesota challenged in court after warning of service cuts, and a judge declined to order those earlier funds released.
  • State officials say they are cracking down on fraud and note CMS approved Minnesota’s corrective plan in March, yet Walz calls the continued holds a “campaign of retribution” and leaders warn of strain on rural hospitals and low‑income families.
  • CMS says the deferrals are temporary and contingent on added documentation, and the step fits a broader White House anti‑fraud push led by Vice President J.D. Vance that includes new 30‑day revalidation plans for high‑risk Medicaid providers.