About two-thirds of the 5,500 Minnesota Medicaid providers deemed high risk were cut off on May 31, 2026, in the state's rush to revalidate providers, and disability services were still in limbo two months later. The Minnesota Star Tribune reported the fallout in a story Disability Scoop published on July 29, 2026.
How the revalidation played out
On May 31, the state Department of Human Services cut roughly two-thirds of about 5,500 organizations in Medicaid programs it deemed high risk for fraud. After an outcry over losing services like adult day programs and overnight supervision, the state let organizations keep billing while they appealed. More than 2,730 appealed, and about 750 had been approved. The revalidation was central to Minnesota's corrective action plan after CMS threatened to withhold $2 billion a year. Staff had less than five months to review thousands of providers, work that normally takes years. One group home director said her agency filed paperwork in February but was disenrolled because the state never processed it; it was later revalidated.
Why this matters for providers and DSPs
Minnesota shows how a fast-tracked revalidation can disenroll legitimate agencies. Providers in other states facing revalidation should file early, keep proof of submission and know their appeal rights.