Minnesota plans Medicaid enrollment freeze

Minnesota’s Department of Human Services (DHS) is preparing to freeze new provider enrollments in 13 Medicaid service categories that the state has identified as high risk for fraud. The policy does not yet have a confirmed start date. Once implemented, DHS expects the freeze to remain in effect for approximately six months. DHS is coordinating with the U.S. Centers for Medicare & Medicaid Services (CMS) as it finalizes the policy. State officials have positioned the move as a step to strengthen oversight while Medicaid continues operating for people who rely on these services.

What the freeze would do

The planned action focuses on provider enrollment, not beneficiary access. DHS has outlined several key points for providers and stakeholders:

• Providers that are already enrolled may continue delivering services as usual.

• New client enrollments are not being halted.

• New providers will generally not be enrolled in the affected service categories during the freeze unless DHS documents a service need and receives CMS approval.

In practical terms, organizations already operating in the impacted categories can continue providing care. The primary change would be a pause on bringing new providers into those service lines during the freeze period, with a limited exception process tied to documented need and CMS approval.

Service categories affected

DHS has identified 13 Medicaid service categories for the enrollment freeze. The impacted service areas include adult day and companion services, several behavioral health and community support programs, nonemergency medical transportation, and peer recovery services. The state’s description of the impacted areas highlights both community-based supports and transportation, along with programs connected to behavioral health and recovery. The intent, according to state officials, is to focus on categories where oversight concerns have been elevated due to fraud risk.

Expanded anti-fraud enforcement

State officials describe the enrollment freeze as part of a broader initiative to disrupt fraudulent billing, preserve Medicaid resources, and protect essential services for individuals who rely on them. DHS’s approach aligns with ongoing efforts to tighten program integrity while maintaining continuity for current service delivery. The proposed freeze follows ongoing audits, provider disenrollments, payment suspensions, and prior enforcement actions under Minnesota’s expanded Medicaid anti-fraud efforts.