Proposed Repeal of Obsolete Rules Governing Recoupment or Recovery of Medical Assistance and MinnesotaCare Benefit Overpayments

To:        Persons Registered to Receive Notification of Department Rulemakings

Re:        Proposed repeal of obsolete rules governing recoupment or recovery of Medical Assistance and MinnesotaCare benefit overpayments that were caused by an enrollee/recipient’s error, Minnesota Rules, part 9505.2215, subpart 1(B), and part 9505.2200 subpart 1.

The Minnesota Department of Human Services (the Department) intends to repeal rules relating to the assessment and recovery of overpayments of medical assistance and MinnesotaCare benefits without a public hearing following the procedures in the Administrative Procedure Act and applicable rules. If, however, 25 or more persons submit a written request for a hearing on the rules by 4:30 p.m. on February 7, 2025, the Department will hold a public hearing on the proposed rule changes, conducted by an Administrative Law Judge.

The obsolete rules relate to assessment and recovery of overpayments of benefits from medical assistance and MinnesotaCare, which are programs within Minnesota Health Care Programs (MHCP). Overpayments occur when an enrollee/recipient receives more MHCP benefits than they were entitled to as a result of fraud, theft, abuse or error on the part of the enrollee. These rules are obsolete based on guidance from the Centers for Medicare & Medicaid Services (CMS) relating to “unwinding” after the end of the COVID-19 public health emergency. Medicaid agencies were directed to stop assessing and recovering MA benefits that are based on the agency’s determination that the overpayments that were the result of an enrollee’s own error. Medicaid agencies also may not request an enrollee to voluntarily repay overpaid benefits. The Department has determined that this also applies to overpayments of MinnesotaCare benefits.

The Department will publish a Notice of Intent to Repeal Obsolete Rules in the December 9, 2024, State Register. If you would like to comment or request a hearing, please follow the procedure described in the Notice. You have until 4:30 p.m. on February 7, 2025, to comment or request a hearing.

Information about this and other rulemaking, including the proposed obsolete rules to be repealed in this rulemaking, will appear later on the Department’s Rulemaking Docket web page, located on the Internet at https://mn.gov/dhs/partners-and-providers/policies-procedures/rulemaking.

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