Rep. Dawn Gillman Statement on DHS Revalidation of High-Risk Medicaid Providers

ST. PAUL, MN — The Minnesota Department of Human Services (DHS) released the results of its revalidation of service providers in the 13 high-risk Medicaid programs.  The revalidation was required by the Federal Centers for Medicare and Medicaid Services (CMS) to ensure program integrity in the wake of the staggering fraud found in Minnesota’s Medicaid system.

The provider revalidation process had to be completed by May 31, 2026, in order to restore federal confidence in Minnesota’s programs and prevent a pending $2 billion cut in federal Medicaid funds due to Minnesota’s catastrophic management failures in these programs, which are intended to serve our most vulnerable citizens. Revalidation included providing documentation on ownership, licensure and staffing, fingerprint background studies for owners, and an on-site visit.

Of the 5,583 high-risk providers reviewed by DHS, only 37% (2,061) were revalidated and approved to continue providing services.

61% of providers (3,411) were disenrolled. Of those, 2,491 providers were removed due to incomplete or inaccurate data, 916 failed site visits, and 4 failed ownership background studies. An additional 2% of providers (111) were disenrolled because they had already stopped providing services.

“When I saw the numbers, my heart honestly sank,” said Rep. Dawn Gillman. “More than 63% of providers in these high-risk programs were disenrolled. That points to years of failed oversight, weak internal controls, and a system that clearly was not being properly monitored. The fact that only 37% of providers were approved to continue operating should concern every Minnesotan.”

“These programs exist to protect and care for our most vulnerable Minnesotans—seniors, individuals with disabilities, struggling families, and children who depend on these services every single day,” Gillman continued. “So to see just how many providers failed to meet even the most basic standards is absolutely infuriating. Minnesotans deserve so much better than this, and quite frankly, my heart breaks for the people who genuinely depend on these services to survive.

But let me be very clear: not every provider caught up in this mess is a bad actor. I’ve heard directly from providers all across Minnesota who are legitimate, hardworking people serving their communities every single day, and they were still thrown into this bucket because of government failure. Some were dealing with clerical errors. Some never received proper notice from DHS. Others were never clearly informed about what was required or when the deadline even was. That is unacceptable.

The Walz administration needs to own this failure. This happened in their own backyard, under their watch, and now Minnesota providers are being forced to carry the burden of the administration’s incompetence. We absolutely need to root out fraud and hold criminals accountable—but we cannot destroy legitimate providers in the process because the state failed to properly communicate and manage the operation.”

Gillman said restoring integrity and public trust to the Medicaid system must remain a top priority moving forward.

“This cannot just become another headline that people forget about next week,” said Gillman. “I am grateful Dr. Oz and his team at CMS have stepped in to restore integrity in our Medicaid programs. Without this revalidation requirement, millions of taxpayer dollars would have continued going out the door without knowing whether providers were qualified, or even providing the services they were billing for.”

“We also want legitimate providers to know we are listening. We want to hear your stories, visit your facilities, and shine a light on the important work being done in communities across Minnesota.”