Feds 'disallow' $113M in Medicaid funds to Minnesota, citing fraud concerns

ST. PAUL — The federal government notified state officials over the weekend that it would "disallow" almost $113 million in Medicaid funds to Minnesota over fraud concerns. In a letter to state officials on Friday, Nov. 6, the Centers for Medicare & Medicaid Services said it won’t reimburse Minnesota for $112,752,702 in Medicaid claims that the state had already submitted for services deemed high risk for fraud. In February, the federal government said it would withhold $259 million in Medicaid payments, and in April, announced it would withhold another $91 million. The $113 million the federal government said it won’t give back is just a portion of those withheld funds. The state is still waiting to hear about several million dollars in withheld funds from the federal government. Temporary Department of Human Services Commissioner John Connolly said in an email to staff that he plans to ask for more information before deciding whether to appeal the CMS decision on the $113 million.

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