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New data from the federal U.S. Centers for Medicare & Medicaid Services (CMS) shows the overall rate of improper payment in Minnesota’s Medicaid program is far below national averages.
In the review released in January, CMS found an error rate of slightly over 2.1%, compared to a national average of 6.1%.
The data for the review was compiled before the Minnesota Department of Human Services began implementing new strategies to minimize the risk of fraud and harden its systems against bad actors. Reviewers at CMS checked billing statements and then compared them with medical records to ensure the billing was accurate.
“No amount of error or fraud is acceptable. Even one dollar is too much,” said Temporary Human Services Commissioner Shireen Gandhi. “We’re committed to making Minnesota a national model for preventing fraud and catching errors. This review shows we have strong internal controls that we continue to improve, and we are not stopping there as we accelerate our efforts to fight fraud.”
More information is in a department news release.
The Minnesota Department of Human Services will freeze new provider enrollments in 13 categories of Medicaid services at high risk for fraud.
The department is working with the U.S. Centers for Medicare & Medicaid Services (CMS) to implement the freeze, at which point the state will no longer accept new applications from businesses seeking to provide these services.
To ensure Minnesotans can receive critical services everywhere they live, the department will issue exceptions to add new providers where capacity is needed. Exceptions will require written approval from CMS.
More information is in a department news release.
Editor’s note: Since this news release was published, the department implemented the freeze effective Jan. 27, 2026. The freeze will be in place for at least six months, and may be extended if necessary.
We understand our work to prevent fraud, waste and abuse is important to Minnesotans and that many want a better understanding of the work and its challenges. That’s why we're taking steps to be proactively transparent when it won’t compromise our investigative work or reveal private data.
To be kept up to date on the latest program integrity actions, sign up for our program integrity email list.
And you can always get information on our Medicaid Program Integrity webpage.
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For accessible formats of this publication, write to dhs.communications@state.mn.us, or call 651-431-2000 or use your preferred relay service.
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