Onamia, Minn.-based Mille Lacs Health System is facing significant financial strain surrounding Medicare billing challenges.
“A glitch in a federal billing system designed to prevent improper payments has led to provider enrollment errors, causing claims to be denied without clear explanation,” a spokesperson for the system said in a statement shared with Becker’s. “As a result, hospitals are not receiving timely reimbursement for care that has already been provided.”
MLHS comprises a main hospital, four medical clinics, a long-term care facility and an assisted living facility, according to its website.
The health system has seen approximately $2.5 million in Medicare reimbursements withheld since Jan. 1, with around $1 million still owed from UCare after the closure of the insurer’s Medicare Advantage and supplement plans in 2025, the statement said. Overall, combined, delayed and outstanding payments for insurers have hit approximately $3.5 million this year.
“Without a timely resolution, these payment delays are creating immediate pressure on the ability to sustain operations,” the statement said. “Timely reimbursement is essential to continuing care in rural communities.”
Mille Lacs senior leadership is working with financial institutions to manage short-term cash needs while engaging with local, state and national leaders to find a more immediate solution. System employees have also been in contact with Medicare representatives; however, responses have been inconsistent, the statement said.
Becker’s has reached out to CMS for comment and will update this story should more information become available.
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