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Dr. Oz to Withhold $2 Billion in Medicaid Funding for Minnesota

The Minnesota Department of Human Services is appealing a decision by the Trump administration to withhold more than two billion dollars a year in Medicaid funding for the state.

The move was announced last week by Dr. Mehmet Oz. The former heart surgeon and longtime television host who now leads the Centers for Medicare and Medicaid Services, claims Minnesota has failed to adequately fight Medicaid fraud. State officials strongly dispute that.

Human Services Deputy Commissioner John Connolly says the allegations are not based on fact, and warns the funding cut would destabilize health care across Minnesota for more than 1.2 million medicaid members.

DHS says it has taken extensive anti-fraud steps since last fall, including provider audits, payment reviews, and program shutdowns.

The state has formally appealed the decision and a federal hearing is expected. Details and updates are posted on the Department of Human Services’ Medicaid program integrity webpage.

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