Impact of Medicaid Fraud Review on Minnesota Customers
A recent review related to fraud is affecting a significant number of Medicaid Care Services customers in Minnesota, as revealed by new state data.
Documents obtained from a Minnesota Department of Human Services (DHS) meeting indicate that 829 individuals have been impacted. This figure is based on 197 providers who received notices of deregistration and did not appeal within a two-week timeframe.
These numbers are likely to fluctuate as DHS aims to reauthorize thousands of providers by the end of the month in coordination with federal regulators.
This information surfaced during a conference discussing continuity of care for those served by deregistered healthcare providers. Continuity of care is crucial in healthcare, ensuring customers receive needed services despite disruptions. 5 EYEWITNESS NEWS inquired about the extent of client disruptions and their connections to alternative care options.
A spokesperson stated that “locally-led agencies, including counties and tribal nations, are partially responsible for coordinating the transition and ensuring services meet assessed needs.”
At a North St. Paul apartment complex, some customers, who recently lost access to services from the Integrated Community Support (ICS) program, reported that they previously had daily staff support available around the clock. Now, due to the suspension of Metro Care Human Services’ license, the office is vacant.
“Metrocare helped me maintain my independence,” shared client Jim Wilson, expressing concern over the loss of services. Another customer, Jemaine Lacey, noted, “It looks like they’re cutting it off. That’s really not good for us here; I need help.”
Wilson observed changes in the building since services shut down, saying, “We’re already starting to see a decline. Some people are stuck in their apartments.” He added, “If you’re not strong enough, you’re not going to survive.”
The suspended provider is part of one of 14 Medicaid programs deemed “high risk” by DHS, which is investigating numerous providers engaged in these programs.
Reflecting on the situation, one person remarked, “I keep asking myself, ‘Why? Why did we have to go through this?'” Meanwhile, Lacey mentioned that county caseworkers are aiding him in regaining some services, like medication management, although others he depended on remain unavailable. “Sometimes it feels overwhelming; you just want to throw in the towel,” he said, emphasizing the vital help from available services.
Wilson hoped to access other services through a different program but found it challenging to connect with a more comprehensive ICS provider.
In response to inquiries, a DHS spokesperson communicated the implications of a Temporary Immediate Suspension (TIS), noting it can be enacted to address immediate harm risks or investigations related to fraud. The details shared through a TIS would typically be communicated to primary agencies serving affected individuals, aiming for coordinated communication and continuity in care planning.
DHS also emphasized statewide policy guidance, which outlines expectations for person-centered care and transition planning. Local agencies, including counties and tribal nations, play a critical role in authorizing services and ensuring that care aligns with the assessed needs of individuals.
As for individuals receiving ICS, each must maintain a legally compliant rental agreement, even amid a TIS. The TIS ultimately concludes ICS services and facilitates transitions to eligible providers in clients’ homes, considering existing leases and housing situations to find suitable service options.


