Trump Administration Approves Minnesota’s Medicaid Plan

The Trump administration has given the green light to Minnesota’s strategy aimed at improving oversight of Medicaid programs. However, it remains uncertain what this means for the $243 million in federal funds that have been deferred.

Kimberly Brandt, deputy administrator and chief operating officer at the Centers for Medicare and Medicaid Services (CMS), informed Minnesota’s Medicaid Director John Connolly in a letter on Thursday that the state’s corrective action plan has been satisfactorily revised. This plan was originally submitted on December 31, and Minnesota has met the milestones set for February and March.

Last month, CMS Administrator Dr. Mehmet Oz revealed that the administration was withholding around $250 million in Medicaid funds from Minnesota due to concerns over potential fraud. At that time, he indicated that the release of funds was contingent on approving a “comprehensive action plan.”

In response, Minnesota Attorney General Keith Ellison initiated a lawsuit to prevent this delay. Ellison’s office communicated with U.S. District Judge Eric Tostrad, stating that the implications of CMS’s approval on the lawsuit remain unclear.

On Friday, the Minnesota Department of Human Services expressed its support for terminating the agreement and hopes that Dr. Oz and CMS will move forward with it.

“CMS has approved Minnesota’s CAP, and we are already working on it, so we believe Dr. Oz and CMS back what they communicated to the public,” said an agency spokesperson. “We’ve reached out to CMS to promptly reverse the deferral and ensure complete federal funding for our Medicaid program. However, we have yet to receive a reply.”

Minnesota DHS Secretary Shireen Gandhi regarded the approval of the state’s corrective action plan as a positive development but noted that this likely represents one of several challenges ahead.

“The approval of our corrective action plan confirms that Minnesota is making the necessary efforts to address fraud and has a robust strategy for ensuring that tax dollars are effectively used for essential Medicaid services,” Gandhi commented. “While this decision from CMS is encouraging, a significant portion of Medicaid funding is still at stake. We are committed to making Minnesota a national model for using Medicaid funding appropriately.”

5 EYEWITNESS NEWS has contacted CMS for further information regarding the status of the deferred funds, but has not yet received a response.