News from DHS for April 2026

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NEWS FROM DHS

April 2026

News from DHS archive

In this issue:


Despite progress with CMS, significant Medicaid cuts loom

Medical center photo

The federal government announced Thursday, April 30, it is deferring an additional $91 million in Medicaid funds that would otherwise flow to the state of Minnesota as reimbursement for claims already paid. 

Human Services Commissioner Shireen Gandhi said: “For more than a year, the Minnesota Department of Human Services has been taking aggressive action to both prevent fraud and recoup fraudulent payments. We have been reporting to our federal partners and the public about those efforts. We are disappointed to learn that CMS will extend deferrals of needed funds for another quarter. Nonetheless, the department will continue to fight against the criminals who target Medicaid programs.”

Just two weeks ago, the state's Medicaid director cautioned that despite the federal government’s approval of the state's corrective action plan to fight fraud, $3.1 billion in federal Medicaid funding remained at risk.

A federal court ruling in early April cleared the way for the Centers for Medicare and Medicaid Services (CMS) to continue its initial deferral of $260 million in quarterly reimbursements. 

“If not reversed, a quarterly deferral of $260 million will dramatically impact our health care delivery systems,” said John Connolly, deputy human services commissioner and state Medicaid director.

“This disruption will increase with every additional deferral. It could blossom into $1 billion annually given CMS’ admitted expectation that it will issue more deferrals and each deferral will likely take several quarters to resolve.” 

An analysis by the Minnesota Department of Human Services demonstrates how the cuts will impact the entire state, potentially devastating rural health care providers. 

Learn more about Minnesota's effort to secure federal funding in the department's April 16 news release. Potential impacts of significant federal funding losses is available on the department's Medicaid Matters website.


Governor's State of the State: "I want to ask for your help in taking the next step."

Governor Tim Walz delivers State of the State Address

Governor Tim Walz delivered his eighth and final State of the State Address on April 28. Here's a snippet from his speech:

"When I announced earlier this year that I wouldn’t be running for a third term, I promised that I would devote my energies to fighting fraud in our state’s human services programs. 

Tonight, I want to update you on our progress. And I want to ask for your help in taking the next step.

In February, I introduced a comprehensive anti-fraud package and began to implement a nine-part fraud prevention roadmap developed by Director of Program Integrity Tim O’Malley. 

We’ve created additional checks and balances. 

We have brought on more investigators, more auditors, and more law enforcement agencies, as well as an outside firm to look at high-risk programs.

People who have ripped us off are getting caught. And they are going to jail.

I’ve said the buck stops with me. ... But taking responsibility doesn’t just mean taking the blame. 

It means taking it upon yourself to fix the problem. 

And when it comes to the next step in fixing this problem, the legislature has a role to play. ...

My ask for you tonight is simple: If you take fraud seriously, take your responsibility to help me stop it seriously. 

If you talk about oversight, vote for oversight."

Read his full speech on the governor's website.


In social media: Faces of Medicaid

Screenshot of social post from April 2026


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Some HCBS providers must complete training May 13-14

Some providers of home and community-based services (HCBS) and Alternative Care programs must complete training and supply the Waiver/AC training certificate as part of Minnesota Revalidate 2026.

This includes Adult Day Services, Individualized Home Supports, Integrated Community Supports and Night Supervision.

Questions? Call the Provider Resource Center at 651-431-2700 or 1-800-366-5411.


Commissioner's statement on this week's search warrants

Human Services Commissioner Shireen Gandhi issued the following statement April 28 as search warrants were executed at five sites of four autism service providers.

“We are aware that search warrants are being executed at autism centers this morning. This is an important action for families who rely on autism services and for Minnesota taxpayers fed up – as I am – with criminals taking advantage of the systems we have in place to deliver social services.

"Our primary goal remains – to make Minnesota’s Medicaid program the best in the nation for program integrity. Coupled with enhanced pre-payment review and the current provider revalidation process, DHS’ partnership with law enforcement to provide investigatory information to federal investigators helps build strong cases, put criminals behind bars, and weeds out providers who are using Medicaid to line their pockets.

"I am grateful for actions by the U.S. Attorney’s Office, other federal agencies, the Minnesota Attorney General’s Office and the Minnesota Bureau of Criminal Apprehension to prosecute those who steal from essential programs designed to help the state’s most vulnerable people.”


In the news

newspaper beside a coffee cup

Parents can help to prevent autism fraud. Sheletta Brundidge recently chatted with Human Services Inspector General James Clark on her Taking Authority Over Autism podcast. He discussed ways to guard against fraud, how to protect your personal information from scammers and what to look out for when choosing an autism service provider.

Yes, IT systems for delivering public benefits are outdated. But can the Legislature agree on a fix? The governor has proposed spending $46 million over three years to address legacy IT systems used by county workers across social service programs. Some legislators put forth alternative ideas to secure funding before session ends. Learn more in a MinnPost article.

Minnesota among top healthcare systems, yet racial gaps remain stark: Minnesota is one of the top states for overall healthcare system performance, surpassing 38 other states, according to a recent report. White Minnesotans experience the best healthcare outcomes, scoring in the 91st percentile nationwide. American Indian and Alaska Native people face the poorest outcomes in the state. And Minnesota performs below the national average for Black residents. Learn more in an MPR article.

Fact Check Team: Exploring fraud cases in Minnesota and beyond. Minnesota has become a hotspot for major fraud investigations. But how much money is actually involved, and has anyone been held responsible? The National News Desk Fact Check team dug into those questions.