CMS orders Minnesota to repay misused Medicaid funds

CMS is seeking to recoup Medicaid money that Minnesota improperly used to fund treatment for mentally ill or chemically dependent people, according to Pioneer Press.

The newspaper reported that CMS ordered the state to repay federal Medicaid money that went toward treatment at institutions for mental diseases — which include hospitals and other facilities with more than 16 beds that treat mentally ill or chemically dependent people — since that is not generally what that funding is used for. The payments went to as many as 100 providers.

The agency sent a letter to the state's department of human services about the issue in May.

Pam Wheelock, acting commissioner at the Minnesota Department of Human Services, told the Pioneer Press the state is trying to tally the amount owed and is "committed to ensuring access to quality care for people who need substance abuse disorder treatment."

She attributed the improper payments to a billing error under which Minnesota took out federal money from a consolidated fund for substance abuse treatment instead of using state money.

Read the full Press report here.


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