Minnesota's Medicaid provider crackdown reaches federal court

Minnesota's Medicaid program-integrity drive is producing early consequences. The state sent revalidation notices to about 5,600 providers of 13 high-risk services in late January, setting a May 31 deadline for completion of all revalidations and deactivation of non-compliant providers — an approach CMS is now pressing nationally, after Administrator Dr. Mehmet Oz on April 23 asked state Medicaid directors to submit two-year revalidation strategies. Minnesota has sharply increased its use of Medicaid payment withholds, and multiple providers have gone to court to challenge freezes they say forced them to close or sharply cut back services. One, Agape Home Health Services, is fighting its suspension in federal court, arguing the state cited common ownership with another provider under investigation rather than allegations specific to Agape itself.