Overview
- Attorney General Keith Ellison filed the lawsuit in U.S. District Court in Minneapolis, requesting a temporary restraining order to restore the funds.
- The complaint names HHS, CMS, Administrator Dr. Mehmet Oz, and HHS Secretary Robert F. Kennedy Jr. as defendants.
- Federal officials recently announced a pause of about $259 million, with court filings saying roughly $243 million was deferred for provider payments in 14 services labeled high risk for fraud.
- The state alleges due process and Administrative Procedure Act violations, arguing the action applies retroactive conditions and lacks a clear evidentiary basis.
- Ellison’s office says the deferral equals about 7% of Minnesota’s quarterly Medicaid funding and could force service cuts affecting roughly 1.2 million enrollees, while HHS and CMS did not immediately comment.