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FOR IMMEDIATE RELEASE
MEDIA CONTACT:
Dominica Bernstein, 651.297.8150
Dominica.Bernstein@house.mn.gov
News Release
Representative Joe McDonald Calls on Walz Administration to Fix DHS Billing Failure Before Providers Shut Down
ST. PAUL, MN — Representative Joe McDonald (R-Delano) is calling on Governor Tim Walz and the Department of Human Services (DHS) to immediately resolve a critical Medical Assistance billing failure that is putting legitimate care providers at risk of shutting down—some as early as this weekend.
Roughly 40 percent of Minnesota home care providers remain unpaid due to billing errors, mismanagement, and a breakdown in communication at DHS. Many providers rely almost entirely on Medical Assistance reimbursements to meet payroll and keep their doors open.
“This isn’t a paperwork issue or a minor delay—providers are missing critical payments right now,” said Rep. McDonald. “Some have gone two pay periods without being paid and are hundreds of thousands of dollars short. If this isn’t fixed immediately, doors will close and care will stop.”
The consequences are already unfolding across Minnesota. Highly regarded autism centers, substance use disorder providers, and home care agencies are being forced to shut down services or take on unsustainable debt. In one case, NorthStar Services was forced to bring clients to local hospitals because it could no longer operate due to nonpayment.
“These are trusted providers doing exactly what the state asked them to do,” McDonald said. “Autism centers, substance use disorder providers, home care agencies—they did the work, served vulnerable Minnesotans, and now the state isn’t paying them.”
Providers were told earlier this week by DHS leadership that payments would be issued by Tuesday. Those payments never arrived, and communication from the department has since stopped.
Rep. McDonald stressed that this failure is not the fault of providers, but of the Walz administration’s inability to manage critical systems at DHS. He noted that this billing breakdown is part of a broader pattern of mismanagement, including years of unchecked fraud and high Medicaid error rates under Governor Walz.
“When DHS fails, it doesn’t just fail on paper—it fails in people’s lives,” McDonald said. “Families are losing care, workers are losing jobs, and providers are being forced to make impossible decisions because the Walz administration let this system collapse.”
Rep. McDonald called for immediate payment to providers and accountability from the Governor’s office.
“This is urgent. Not next month. Not after another review,” McDonald said. “Providers need to be paid immediately, and the Governor needs to take responsibility for a breakdown this severe.”
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