Feds Tell DHS to Fix Medicaid Rates or Face Penalties

Posted at: 07/21/2013 10:10 PM
Updated at: 07/22/2013 7:17 AM
By: Jay Kolls

The federal government warned the Minnesota Department of Human Services to fix their Medicaid rates or face penalties.

The Center for Medicare and Medicaid Services, in a letter, told DHS it might want to "revise its CY 2012 and CY 2013 capitation rates." CMS has not yet approved Minnesota's Medicaid rates for 2012 or 2013.

The letter also says, in part, if the rate setting is not adjusted "Minnesota will be unable to claim 100 percent full federal participation for Medicaid increases." The state pays about $2 billion a year into Medicaid, and the federal government matches that with another $2 billion.

The Minnesota Department of Human Services declined KSTP's request for an interview but issued a statement that says, in part, "we view this letter as a positive step forward. Many of the issues raised by CMS already have been addressed and we are confident our Medicaid rates will be approved."