Walz's Plan To Overhaul MN Human Services Would Consolidate, Evaluate
The proposal aims to improve oversight and efficiency by centralizing administrative duties and Medicaid eligibility, affecting nearly 80% of basic care services, officials said.
- On Tuesday, Gov. Tim Walz announced a proposal to replace Minnesota's managed-care model with a single statewide organization for claims, financial transactions, and provider services.
- Prompted by sweeping fraud allegations, Gov. Tim Walz proposed the plan after managed care organizations absorbed hundreds of millions in losses in recent years and aims to strengthen oversight.
- The DHS issued a request for proposals to re-evaluate its organization and funded a comprehensive study of program administration across Minnesota.
- The proposal would create several hundred state jobs and require legislative approval to end contracts with eight managed care organizations and transition some county tasks.
- The proposal would shift Medicaid eligibility determinations from counties to the state by July 1, 2028, and Sen. John Hoffman, D-Champlin, said he was disappointed to learn about this without thorough committee conversation.
13 Articles
13 Articles
Walz Proposes Minnesota Medicaid Overhaul Amid Fraud Scrutiny
Minnesota Gov. Tim Walz on Tuesday proposed a major overhaul of how the state administers Medicaid, calling for a centralized system to replace the current patchwork of counties and managed care organizations. The proposal comes after months of mounting federal scrutiny over fraud in Minnesota’s social services programs. In February, the Trump administration withheld $259 million in Medicaid funds from the state over fraud allegations, and Walz…
Walz's plan to transform human services faces tough sledding at Capitol
Walz announces plan to centralize, modernize Department of Human Services to cut out fraud
ST. PAUL (KVRR/FOX9) — Gov. Tim Walz announces a major plan to modernize and centralize the Department of Human Services as part of an effort to crackdown on fraud in Minnesota’s Medicaid programs. The state will shift away from “complex, layered administration managed by a patchwork of counties, Managed Care Organizations, and state agencies” to a centralized entity run by the state. The state will upgrade its Medicaid administration systems, w…
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