The US Department of Health and Human Services has deferred more than $1 billion in Medicaid payments to California and Minnesota pending review of claims it calls high-risk.
- HHS and CMS are withholding about $867.5 million from California and $199 million from Minnesota, announced 21 July 2026.
- Minnesota’s flagged claims span 14 “high-risk” service areas that include long-term care and support for elderly and disabled people.
- States can release the funds by supplying documentation showing the claims meet federal requirements; HHS describes the deferrals as temporary, not permanent cuts.
- Disability advocates and service providers report the rapid review process is already disrupting some legitimate developmental-disability and home-care programs.
Why it matters: Even a temporary funding pause can ripple into real disruptions for people who rely on Medicaid-funded home care, early autism services and other disability supports while providers scramble to prove compliance.
Source: HHS →
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