Minnesota Gov. Tim Walz on Thursday rolled out a legislative anti-fraud package after the Trump administration said it is deferring $259.5 million in quarterly federal Medicaid funding to Minnesota while federal officials investigate certain claims.
In a federal announcement outlining a broader health care fraud crackdown, the Centers for Medicare & Medicaid Services said the Minnesota action is part of an effort to scrutinize suspect billing and protect taxpayer dollars.
“Today, the Centers for Medicare and Medicaid Services announced its deferral of $259.5 million in quarterly federal Medicaid funds to the state of Minnesota while federal officials review claims,” the announcement read.
The Department of Health and Human Services also announced the deferral of the funds in a separate announcement, referencing the review of claims.
“Through this review, we are working to ensure the protection of taxpayer dollars,” the announcement read.
HHS did not provide a timeline for when the money could be released.
Walz’s anti-fraud package aims to crack down on healthcare-related fraud from the state side.
According to a fact sheet from the Minnesota Governor’s Office outlining the anti-fraud package, the new law would create a new “Theft of Public Funds” law that would increase criminal penalties by 20 percent over Minnesota’s general theft law.
Additionally, the law would extend the statute of limitations to seven years for crimes related to healthcare fraud.
The announcement comes at a time when state and federal officials are under increasing pressure to prove a tougher stance against public program fraud, including Medicaid, which can have significant price tags for taxpayers and patients alike.
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