This browser does not support the Video element.
Feds have no plans to release Medicaid funding to Minnesota
The federal government says it has no plans yet to release the hundreds of millions of dollars in Medicaid funds to Minnesota it has previously paused over fraud concerns. It's led to an ongoing legal battle. FOX 9's Soyoung Kim has more.
MINNEAPOLIS (FOX 9) - The federal government says there are no plans yet to release the hundreds of millions of dollars in Medicaid funds to Minnesota it had previously paused over fraud concerns.
Federal officials asked the state to provide more information and verify the spending.
Feds not satisfied
The backstory:
Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz addressed Medicaid funding being withheld from Minnesota Thursday. Top federal officials were in Minneapolis announcing charges in fraud schemes.
Dr. Oz says there are no plans to release the roughly $350 million to Minnesota for Medicaid payments being withheld at this time.
"We are able to identify enough concerns that it's caused us to defer $350 million to Minnesota," said Oz. "Our job is to make sure that your tax dollars and tax dollars of other Americans coming into the federal government are appropriately spent."
The federal government had cited fraud concerns as a reason for the Medicaid freeze.
What we know:
Federal authorities announced charges in Minnesota for fraud schemes that targeted more than $90 million in public funds. The U.S. Department of Justice says 15 people have been charged and are being accused of defrauding Medicaid programs.
What they're saying:
Oz said the state stills needs to justify the spending and address any variability.
"We need actual numbers and factual written responses to the many areas that we've pointed to as evidence that these documents are not satisfactory," said Oz. "What we look for in very specifically, and you would do the same thing. If your normal bill is $100, and then all of a sudden it's $500, someone needs to ask what happened. Sometimes there's a reason for that."
The other side:
The state says it has taken steps to combat fraud and had a corrective action plan approved by the federal government earlier this year.
The Minnesota Department of Human Services (DHS) Inspector General James Clark sent FOX 9 a statement about the federal Medicaid fraud charges and addressed the state’s efforts.
"We have been working with career federal and state partners for months to help them build criminal cases against most of these individuals – providing billing and ownership information, investigative files and treatment records for many of the businesses. Medicaid is meant for helping people who truly need it, not lining the pockets of criminals.
"My office continues to use our administrative power to shut off money to these and other Medicaid providers as soon as we uncover credible allegations of fraud, which we’ve done more than 600 times over the past 18 months. In fact, we stopped payments to some of the businesses connected to today’s charges more than a year ago.
"We are working more aggressively than ever to prevent and stop Medicaid fraud – tightening up oversight on the front end and taking action to stop criminals. As our efforts continue, we fully expect to see more charges."
What's next:
Federal officials also announced the expansion of the Midwest health care fraud strike force will add prosecutors dedicated to Minnesota.