The state of Minnesota is at risk of losing more federal funding due to the state’s fraud investigations.
The Centers for Medicare and Medicaid Services (CMS) says they are withholding more than two billion dollars in annual Medicaid funding, saying that the Minnesota Department of Human Services has failed to take actions to fight fraud.
Minnesota DHS Temporary Commissioner Shireen Gandhi says they have taken the necessary steps, and that the federal decision will be devastating to the state…
“Minnesota can not absorb the loss of more than two billion dollars in annual funding for these programs without catastrophic consequences for the people we serve. We’re going to have to work with MMB and our legislature. Two billion dollars is very significant and will affect the state budget. It will affect DHS and it’s hard to overstate the impact it will have to Minnesota.”
The state has filed an appeal. DHS says a hearing must be scheduled with the federal agency so they can argue their case on behalf of the state. There has been no word yet on when, or if, that could happen.
