Minnesota says federal officials won't clarify how to restore $243M in Medicaid funding withheld over fraud

A federal judge heard a motion Thursday that stemmed from a lawsuit Minnesota leaders filed against the federal government for withholding $243 million in Medicaid payments to the state.

Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said in February that the funds stemmed from provider payments made in fourteen services that the state Department of Human Services identified as "high-risk" for fraud. 

In court, a representative for the Minnesota Attorney General's Office said they're stuck, and don't know what proof or action the federal government wants in order to get the Medicaid funding back.

The state also said federal officials have been difficult to work with; despite providing a corrective action plan and admitting that fraud is an issue in Minnesota, the state hasn't received clarity from the federal government about whether the plan is acceptable or not.

In January, the Trump administration said it would withhold the money from Minnesota as part of what Vice President JD Vance described as an "aggressive crackdown on misuse of public funds."

The state appealed that on Jan. 13 and early this month, sued Oz and Health and Human Services Secretary Robert F. Kennedy Jr., saying the move could force Minnesota to cut health care for those who qualify.

Medicaid is a safety net for many low-income Americans.

This story will be updated.