In a move meant to tighten up on oversight and trim the fat from the Medicaid program, the Minnesota Department of Human Services has begun the disenrollment of inactive Medicaid providers. On October 15, approximately 800 providers, who haven't submitted a bill for services in more than a year, found themselves out of the system. The department's push for efficiency was detailed in a news release on October 16th.
It seems the axe that's fallen is part of a larger strategy to ensure Medicaid funds are being used efficiently—to actively serve those enrolled in Minnesota’s public health care programs. It's a strategy that Temporary Human Services Commissioner Shireen Gandhi is not hesitant to aggressively move forward with. "We must reduce risk and increase efficiencies wherever we can," Gandhi said in the news release. "Taking this first step to streamline the pool of inactive providers will strengthen the integrity of Minnesota’s Medicaid programs and services."
This decision doesn't exist in isolation. It comes as a response to Governor Walz's Executive Order 25-10, which directs state agencies to bolster their counter-fraud tactics. The order specifically directed the DHS to “immediately disenroll all Minnesota Health Care Program enrolled providers who have not billed Medicaid in the last 12 months," within what's permissible by law. This is a clear signal that Minnesota is seeking to optimize its healthcare system by filtering out the dormant elements, with a promise of more cuts on the horizon.
Providers that are finding themselves cut off were given notice. In the letter, the DHS included the necessary information to appeal the decision, just in case some providers were wrongly culled. As reported by the department, this round of disenrollments doesn't affect 621 housing stabilization services providers—yet. Their reckoning will soon come, with their services set to end on October 31st. With these ongoing changes, Minnesota is making it clear: to stay in the game, providers need to stay active and bill their services.
