Overview
- The suit, filed in U.S. District Court in Minneapolis, seeks a temporary restraining order to restore $243 million to the state’s Medicaid program.
- The complaint names HHS Secretary Robert F. Kennedy Jr., CMS Administrator Dr. Mehmet Oz, and their agencies in their official capacities.
- CMS said on Feb. 25 it would defer about $259 million for the quarter, including roughly $243 million tied to provider payments in 14 services Minnesota labeled high risk for fraud.
- The administration describes the action as part of a national fraud crackdown following a Jan. 6 notice flagging more than $2 billion a year in potential noncompliance and giving the state 60 days to respond.
- Minnesota says the withheld amount equals about 7% of a quarterly payment and could force cuts affecting roughly 1.1–1.2 million enrollees.