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CMS defers roughly $259 million amid focused review of 14 Medicaid services; Minnesota lawmakers warn of budget strain
Summary
DHS told the Fraud Prevention committee that the Centers for Medicare & Medicaid Services is deferring about $259 million while it reviews 14 high‑risk services, a move officials said could require the state to repay federal funds and strain the state budget and anti‑fraud work.
Deputy Commissioner John Connelly told the Fraud Prevention and State Oversight Committee on March 2 that the Centers for Medicare & Medicaid Services (CMS) has begun deferring roughly $259,000,000 in federal Medicaid payments while it conducts a focused review of 14 high‑risk services.
Connelly said the deferral applies beginning with the fourth quarter of federal fiscal year 2025 and that focused reviews typically take several quarters. "They will begin deferring dollars roughly $259,000,000 ... while they do a focused review of the 14…
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