CMS Disallows Minnesota $112 Million in Medicaid Reimbursements
CMS denied Minnesota more than $112 million in Medicaid reimbursements for the quarter ended Sept. 30, 2025, MPR News reported Nov. 10. The disallowance stems from a $259 million deferral CMS issued in February over high-risk services billed from July through September 2025, and a preliminary state review found CMS rejected claims over administrative documentation gaps such as missing signatures, sign-offs, dates and addresses. Minnesota, which sued CMS and HHS over the frozen funds in March, is questioning how CMS selected 330 claims out of more than 6 million filed and how it calculated the final figure; officials say CMS has not responded to repeated information requests. CMS has deferred $550 million in Minnesota Medicaid funds since February, with two additional freezes totaling $350 million still pending, and the state has 60 days to appeal.