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Committee warned CMS may withhold billions; DHS outlines corrective actions and budget risk
Summary
Department of Human Services budget director Elise Bailey told the human services budget committee that CMS has indicated intent to withhold $515 million per quarter and is conducting detailed claim reviews that could lead to deferrals; DHS has submitted a corrective action plan including provider revalidation and prepayment reviews.
Elise Bailey, budget director at the Minnesota Department of Human Services, told the Human Services Budget Committee that federal officials have signaled an unusually large funding risk to the state. "CMS has indicated that they intend to withhold $515,000,000 per quarter," she said, and added the agency has also warned of the potential for a deferral — a retroactive review that can require states to prove past claims were paid in accordance with federal rules.
Bailey said DHS has submitted a corrective action plan to address program-integrity concerns and described measures the department is taking: "One of them is…
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