“We have decided to temporarily halt certain amounts of Medicaid funding that are going to the state of Minnesota in order to ensure that the state of Minnesota takes its obligation seriously to be good stewards of the American people’s tax money,” Vance said.
Fourteen programs, including autism care and non-medical transport, are among the programs viewed as high risk for fraud. Roughly $260 million will not be reimbursed by the federal government.
“I don't know when at sometimes somebody says that enough is enough. This is a targeted retribution against a state that the president doesn't like,” Minnesota Gov. Tim Walz (D) said in a press briefing Thursday. “The real shame in all this is this is a state that does health care as well as anybody.”
Public health groups warned that this pause in funding will disproportionately affect the most vulnerable in the state, where about a quarter of the population is on Medicaid.
“Medicaid is not just a line item in a budget—it is a lifeline for over one million families, seniors, people with disabilities, and rural and urban communities across our state,” the Minnesota Public Health Association said in a statement to The Hill.
“We urge constructive partnership to safeguard program integrity while ensuring that no Minnesotan experiences disruption in access to essential health services. Protecting health and stability must remain our common ground.”