The Minnesota Senate Human Services Committee convened on March 5, 2025, to discuss critical updates regarding substance use disorder (SUD) treatment services in the state. Christy Grom from the Department of Human Services (DHS) provided an overview of potential service disruptions linked to NuWay, a major SUD treatment provider facing serious allegations of fraud.

Grom highlighted that NuWay, which serves approximately 715 individuals across Minnesota, is currently under investigation for billing irregularities, including claims for services not rendered and improper financial practices. As a result, DHS has issued a payment withhold against NuWay, which has been in effect since February of the previous year. Despite these issues, NuWay retains an active license and continues to operate.

The committee was informed that if NuWay were to close, they would be required to provide a 25-day notice to DHS, allowing for a transition plan to be implemented for affected clients. Grom emphasized that DHS has been proactive in preparing for this possibility, collaborating with county partners to ensure resources are in place for a smooth transition.

In addition to addressing the immediate concerns regarding NuWay, Grom outlined several legislative proposals aimed at improving the SUD treatment landscape in Minnesota. These include measures to prevent duplicative billing, enhance access to recovery housing, and adjust billing units for outpatient services to better meet client needs.

The committee's discussions underscored the importance of maintaining access to SUD treatment services and the ongoing efforts by DHS and the state government to address challenges within the system. The situation remains fluid, and further updates are expected as the investigation and legislative proposals progress.