CMS approved Minnesota’s plan to tackle Medicaid integrity concerns, according to a March 19 letter to the state’s Medicaid director.
In January, CMS informed Minnesota of “several deficiencies” in the state’s Dec. 31 plan submission to resolve integrity concerns, which the state then revised Jan. 30. According to a March 19 letter from Kimberly Brandt, CMS deputy administrator and COO, Minnesota has already achieved two early milestones — with deadlines of Feb. 1 and March 1 — as outlined in the revised plan.
CMS’ letter also asked about the feasibility of Minnesota meeting a May 31 deadline for its off-cycle provider revalidation process, looking at high-risk provider types. CMS said it is hoping to stay the state’s pending appeal from January regarding a withholding action until the corrective action plan is complete. Previously, CMS had threatened to withhold up to $2 billion annually from the Medicaid program.
In early March, Minnesota sued CMS and HHS over nearly $244 million in frozen Medicaid funds. After receiving Ms. Brandt’s letter, Brandon Boese, an assistant state attorney general, sent a letter updating the U.S. district judge overseeing the court case. In his letter, Mr. Boese said CMS Administrator Mehmet Oz, MD, promised to release the funds once the state proposes and acts upon a corrective action plan.
The update comes amid broader federal scrutiny of Medicaid programs, which has expanded to other states in recent weeks. The Trump administration has even targeted its first Republican-led state, Florida. President Donald Trump issued an executive order March 16 that set up a task force focused on public benefits fraud, as well.
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