Minnesota is preparing to terminate nearly 1,000 Medicaid provider contracts as the states funding crisis escalates.
State Medicaid Director John Connolly says that's because they haven't replied to a recent audit of nearly 6,000 providers state wide.
This comes as a U.S. District Court has rejected the state’s request for a temporary restraining order to block the federal government from withholding $259 million in reimbursements for previously paid claims over fraud concerns.
"Another $2 billion in future Medicaid funding is also at risk until we implement the state's corrective action plan to address waste, fraud, and abuse, and until CMS feels that that plan has been fully implemented," Connolly said Thursday. "On this front, we are making progress. Over the last year we've been working to build a comprehensive plan to combat fraud, waste, and abuse."
Those legal setback mark the beginning of what could be an annual $1 billion loss if federal regulators continue to defer funding over fraud concerns.
Connolly says their focus now is to re-verify nearly those providers across the state in 13 high risk programs.
"As of April 5th, 550 providers have completed the process and been approved," Connolly explains. "160 providers have been disenrolled. 1,510 applications are incomplete, and 990 providers have not responded."
He says he anticipates the review process to be lengthy as they prepare to argue for the eventual release of these funds through the federal appeals system.
