Feds approve state efforts to meet anti-fraud requirements on Medicaid
By Alex Derosier
Published on March 21, 2026.
The federal government has approved a plan by the Minnesota Department of Human Services (DHS) to address fraud in state programs. This move should free up hundreds of millions in Medicaid funding that the federal government had threatened to temporarily withhold. The Centers for Medicare and Medicaid Services had previously threatened to suspend roughly $2 billion in annual funding if the state didn't take action on programs deemed at high risk for fraud. Minnesota Medical Assistance, the state’s Medicaid program, provides care and services to 1.2 million people. The U.S. Attorney's Office has reported significant fraud in federally funded programs in Minnesota, though the exact amount remains up for debate. The state had made changes to its initial plan in December, including cutting off new licenses and provider enrollments in programs deemed high-risk for fraud, but federal officials initially found the changes unsatisfactory.
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