Trump Administration Denies $112 Million in Medicaid Reimbursements

November 12, 2026

The Centers for Medicare and Medicaid Services (CMS) has denied Minnesota more than $112 million in Medicaid reimbursements for the third quarter of 2025. More than 1 million Minnesotans could be affected by this move.  

This denial of funds comes nine months after the Trump administration announced that it would withhold $259 million in Medicaid payments to Minnesota, until further investigation of fraud in the state is completed.   

“CMS is done trying to catch fraudsters with their hands in the cookie jar—instead, we’re padlocking the jar and letting them starve,” said CMS Administrator Mehmet Oz, MD, said at the time. “This proactive approach will help us crush fraud, protect taxpayer dollars, and make sure the vulnerable Americans who depend on our programs get the care they need.”  

In a statement, then-Department of Human Services (DHS) Commissioner Shireen Gandhi said: “Deferring $259 million will significantly harm the state’s healthcare infrastructure and the 1.2 million Minnesotans who depend on Medicaid.”  

The current DHS Commissioner, John Connolly, says that CMS has yet to make decisions on two additional Medicaid funding freezes (i.e., deferrals) totaling $350 million for services provided after Q 1 of 2026. It is possible that CMS will redetermine some or all of these temporarily frozen funds to permanent denials. 

The MMA will continue to monitor updates related to Medicaid fund denials and freezes in Minnesota. Contact the MMA at mma@mnmed.org with questions. 

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Trump Administration Denies $112 Million in Medicaid Reimbursements

November 12, 2026

The Centers for Medicare and Medicaid Services (CMS) has denied Minnesota more than $112 million in Medicaid reimbursements for the third quarter of 2025. More than 1 million Minnesotans could be affected by this move.  

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