{"id":122969,"date":"2026-03-03T10:52:09","date_gmt":"2026-03-03T15:52:09","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/fraud-plagued-minnesota-sues-trump-admin-for-withholding-243m-in-medicaid-payments-122969"},"modified":"2026-03-03T10:52:09","modified_gmt":"2026-03-03T15:52:09","slug":"fraud-plagued-minnesota-sues-trump-admin-for-withholding-243m-in-medicaid-payments","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/fraud-plagued-minnesota-sues-trump-admin-for-withholding-243m-in-medicaid-payments-122969","title":{"rendered":"Fraud-plagued Minnesota sues Trump admin for withholding $243M in Medicaid payments"},"content":{"rendered":"
\n

Minnesota filed a federal lawsuit<\/a> Monday against the Trump administration, accusing federal health officials of illegally withholding $243 million in Medicaid payments from the state.<\/p>\n

Attorney General Keith Ellison and the Minnesota Department of Human Services sued the Centers for Medicare and Medicaid Services (CMS) and the U.S. Department of Health and Human Services (HHS), arguing the funding freeze violates federal law.<\/p>\n

The state is seeking a temporary restraining order to immediately block the action.<\/p>\n

The dispute stems from a January notice<\/u><\/a> in which the Trump administration said it would withhold more than $2 billion annually from Minnesota\u2019s Medicaid program over what it described as “noncompliance” with federal regulations, specifically, alleged failures to “adequately identify, prevent, and address fraud in its Medicaid program.”<\/p>\n

USDA IMMEDIATELY SUSPENDS ALL FEDERAL FUNDING TO MINNESOTA AMID FRAUD INVESTIGATION<\/strong><\/a><\/p>\n

State officials say they have not been told specifically how Minnesota is out of compliance or what changes the administration wants to see.<\/p>\n

The lawsuit follows a Feb. 25 announcement from CMS that it was deferring<\/a> roughly $260 million in quarterly federal Medicaid funding to Minnesota, including about $243 million tied to “unsupported or potentially fraudulent” claims.\u00a0<\/p>\n

CMS said the deferral is part of a broader fraud crackdown and cited unusually high spending and rapid growth in personal care services, home- and community-based services, and other practitioner services.<\/p>\n

HEAVILY-REDACTED AUDIT FINDS MINNESOTA MEDICAID HAD WIDESPREAD VULNERABILITIES<\/strong><\/a><\/p>\n

“For decades, Medicare fraud has drained billions from American taxpayers \u2014 that ends now,” HHS Secretary Robert F. Kennedy Jr.<\/a> said in a statement. “We are replacing the old \u2018pay and chase\u2019 model with a real-time \u2018detect and deploy\u2019 strategy, using advanced AI tools to identify fraud instantly and stop improper payments before they go out the door.”<\/p>\n

Minnesota officials contend the move improperly uses a funding “deferral” mechanism and amounts to denying the state due process before any formal finding of noncompliance.<\/p>\n

WALZ SLAMS TRUMP ADMIN FOR TEMPORARILY HALTING MEDICAID FUNDING TO MINNESOTA: \u2018CAMPAIGN OF RETRIBUTION\u2019<\/strong><\/a><\/p>\n

The threatened cuts represent about 7% of Minnesota\u2019s quarterly Medicaid funding and could force reductions in health care services<\/a> for low-income residents, according to Ellison\u2019s office.<\/p>\n

“Trump’s M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all,” the attorney general said. “These cuts are the latest in a long series of efforts to go around the law to punish Minnesotans \u2014 but just as we fought back and won when they illegally tried to cut funding for childcare<\/a>, hungry families, and our schools, we are suing them again today to make them follow the law.”<\/p>\n<\/div>\n

Source – https:\/\/www.foxnews.com\/politics\/fraud-plagued-minnesota-sues-trump-admin-withholding-243m-medicaid-payments <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Minnesota filed a federal lawsuit Monday against the Trump administration, accusing federal health officials of illegally withholding $243 million in Medicaid payments from the state. 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