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MINNESOTA: Feds deny more than $112 million in Medicaid reimbursements

The federal Centers for Medicare and Medicaid Services (CMS) is denying Minnesota more than $112 million in Medicaid reimbursements for the quarter ending Sept. 30, 2025. CMS reviewed 330 claims from high-risk services and found 78 did not meet federal requirements, citing problems such as missing signatures, dates and documentation, and extrapolated the total. Minnesota's Department of Human Services says it has more questions than answers and is considering its options, including an appeal. About $550 million in Minnesota Medicaid funds remains frozen.

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Why it matters

The disallowance becomes final unless Minnesota challenges it, and the state would have to recover the money from providers it already paid. More than a million Minnesotans rely on Medicaid, and about $550 million in the state's Medicaid funds remains frozen.

How each side sees it

Federal officials sayCMS says the claims failed federal reimbursement requirements, as part of an anti-fraud effort targeting high-risk Minnesota programs.
Minnesota officials sayTemporary Human Services Commissioner John Connolly says the amount is roughly 1,000 times greater than the claims first identified; the state questions how CMS picked the claims and calculated the total, and says CMS has not answered repeated requests.

Sources

Checked against 3 established news sources:

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Published Wednesday, November 11, 2026. Spot an error? Email [email protected]. See our corrections log and standards.

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