Local agency monitoring Minn. Medicaid situation
Trump administration announced plans to halt payments
MARSHALL — Last week, the Trump administration announced it planned to halt about a quarter billion dollars in Medicaid payments to Minnesota over concerns about social services fraud in the state. But officials at Southwest Health and Human Services said it’s too soon to tell exactly how that plan might impact their clients.
On Friday, SWHHS Director Stacey Timm said the agency is still analyzing the impacts of the announcement. So far, SWHHS has not had funding freezes, Timm said.
SWHHS serves people in Lincoln, Lyon, Redwood, Pipestone, Murray and Rock Counties. Some of the financial assistance programs the agency works with include health care programs like Medical Assistance, also known as Medicaid, and the Minnesota Care program for Minnesota residents who don’t have health insurance. SWHHS also works with food programs like the Supplemental Nutrition Assistance Program.
On Wednesday, the federal Centers for Medicare and Medicaid Services announced plans to halt about $260 million in Medicaid payments to Minnesota this month, the Associated Press reported. The administration said it would withhold the funds until Minnesota Gov. Tim Walz’s administration put together an action plan for stopping social services fraud.
Walz announced a package of anti-fraud measures on Thursday, which included establishing a centralized Office of Inspector General to lead fraud prevention measures, expanding the Minnesota Bureau of Criminal Apprehension’s financial crimes and fraud unit, and increasing criminal penalties for theft of public funds.
Timm said that, while SWHHS has not experienced funding freezes, there are ways for members of the public to learn more about what federal funding actions are going on in Minnesota. On the website for Minnesota’s Department of Children, Youth and Families, there is an online tracker of federal funding issues the department is monitoring, and a rundown of issues that are in litigation with the state.
Currently, the Department of Children, Youth and Families is monitoring a funding freeze that was announced Jan. 9 on U.S. Department of Agriculture grants, which includes funding supporting SNAP. Minnesota is working with partners to assess potential impacts to federally funded programs and grants.
Department of Children, Youth and Families said it was also tracking several lawsuits affecting SNAP and other federal programs. In February, a court order prevented a funding freeze affecting federal grants for Temporary Assistance for Needy Families, Social Services Block Grants, and Child Care Development Fund grants.

