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DHS says coding error will leave state to absorb roughly $113M in federal SUD payments for seven tribal providers
Summary
At a March 12 Minnesota Senate Human Services Committee hearing, Department of Human Services budget staff told senators a coding error led to about $113 million in federal payments for services at seven tribal residential substance‑use‑disorder providers that should have been borne by the state.
At a March 12 meeting of the Minnesota Senate Human Services Committee, Miss Bailey, budget director for the Minnesota Department of Human Services, told senators that a coding error in DHS’s billing system resulted in federal funds being used to pay for services provided by seven tribal residential substance-use-disorder (SUD) providers dating back to 2015.
“The providers provided them as intended. It wasn't, payment error to the provider or any fraudulent, activity. It was really on the back end,” Miss Bailey said, explaining the error concerned how services were coded for federal matching rather than whether services were delivered.
DHS officials told the committee the immediate impact recorded in the agency forecast is roughly $113,000,000 in one-time back payments that the state would need to absorb because the services should have been booked to…
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