Minnesota Attorney General and DHS are pursuing federal legal action for Medicaid funds

MINNESOTA (KVRR) — Minnesota Attorney General Keith Ellison and Minnesota Department of Human Services have filed a federal lawsuit against the Centers for Medicare and Medicaid Services and the U.S Department of Health and Human Services.

The lawsuit claims the departments are illegally attempting to withhold $243 million in Medicaid payments after DHS has been working to abide by the department’s ruling to stop fraud.

The Trump Administration announced in January that more than $2 billion would be withheld based on Minnesota’s ‘noncompliance.’

DHS had appealed the notice asking for documentation about what the department wants to be changed, but no documents have been provided.

“We are deeply overextended as a department, and nonetheless, we will do everything we possibly can to get through this as quickly as possible to minimize the length and the size of the deferrals,” said John Connolly, Minnesota Department of Human Services.

Ellison and DHS will also be requesting that the court issue a temporary restraining order to block the withholding.