Minnesota Says It Must Repay Feds $48M For Improper Chemical Dependency Payments

click to expand

ST. PAUL, Minn. (AP) -- The Minnesota Department of Human Services says it must repay the federal government an estimated $48 million that it paid to ineligible chemical dependency treatment providers.

The Centers for Medicare and Medicaid Services ordered the state in May to cease the payments to as many as 100 inpatient providers classified as "institutions for mental diseases." It said Medicaid money generally can't be used for treatment in such facilities. It ordered repayment but didn't specify a dollar amount.

On Monday, the Department of Human Services said the estimated cost to the state will be $48 million. That's on top of the $25 million the agency overpaid to two tribes for substance abuse treatment under Medicaid. Altogether, the St. Paul Pioneer Press reports, the errors will cost the state $73 million.