The Minnesota Department of Human Services will freeze new provider enrollments in 13 categories of Medicaid services at high risk for fraud. The department is working with the U.S. Centers for Medicare & Medicaid Services (CMS) to implement the freeze, at which point the state will no longer accept new applications from businesses seeking to provide these services. 

A start date for the freeze is not yet determined. The pause is initially slated to last six months.

“This action is one more step we are taking to disrupt fraudulent billing,” Temporary Human Services Commissioner Shireen Gandhi said. “We must safeguard Medicaid resources, always mindful that access to these programs is a lifeline for so many Minnesotans.”

The Centers for Medicare & Medicaid Services (CMS) directed Minnesota to freeze new provider enrollments in 13 high-risk categories as a fraud fighting measure. As part of the Governor's Executive Order 25-10 to combat fraud, DHS had already announced two-year licensing freezes on home and community-based services (HCBS) and adult day programs, effectively limiting new provider enrollment in those services. HCBS includes individualized home supports, integrated community supports, and night supervision.

Currently enrolled providers can continue to serve clients in the service areas they are already approved to provide. This action does not freeze client enrollment. 

To ensure Minnesotans can receive critical services everywhere they live, the department will issue exceptions to add new providers where capacity is needed. Exceptions will require written approval from CMS.

The department is currently working with CMS to finalize specifics of the moratorium, including determining how applications in queue will be handled. The department will share those details soon.

The 13 categories deemed high risk for fraud in this action are: adult companion services, adult day services, adult rehabilitative mental health services, assertive community treatment, community first services and supports, early intensive developmental and behavioral intervention, individualized home supports, integrated community supports, intensive residential treatment services, night supervision services, nonemergency medical transportation services, peer recovery support services and recuperative care. Minnesota discontinued Housing Stabilization Services as a program in October 2025.

CMS also directed the state to review and revalidate enrollment for current providers in 13 high-risk categories. The department is working with CMS on the timeline and specific requirements of this initiative and will share details when they are available. 

Since May 2025, the Department of Human Services has taken these actions to prevent and stop fraud: 

• Identified 11 additional Medicaid benefits for high-risk classification.
• Disenrolled approximately 800 inactive providers in high-risk programs, freeing resources to focus on active providers.
• Brought on a third-party vendor to audit fee-for-service billing for 14 high-risk services, using advanced analytics to identify risks before making payments.
• Terminated housing stabilization services due to widespread fraud. 
• Launched a new public website to provide details and regular updates on program integrity work.
• Paused licenses for new home and community-based services providers and adult day providers for two years, freeing capacity to provide monitoring and oversight of existing providers.