Minnesota on March 2 challenged the deferral of $259.5 million in federal Medicaid funding in a lawsuit against the Centers for Medicare & Medicaid Services (CMS) and the Department of Health and Human Services.
The Trump administration announced the deferral Feb. 25, which will temporarily delay in federal matching payments to Minnesota while CMS determines whether the state’s Medicaid expenditures complied with federal requirements. CMS indicated that it would continue to defer these payments until the agency is satisfied with the state’s corrective action plan and has held out the possibility of additional deferrals.
In the lawsuit, filed in the U.S. District Court for the District of Minnesota, the state requested a temporary restraining order (TRO) and an expedited preliminary injunction to bar the federal government from proceeding with the deferral. The district court has not yet ruled on the TRO or preliminary injunction.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.