Minnesota to return $15M in Medicaid cash to feds, but Grassley plans to continue probe

  • Article by: Associated Press
  • Updated: April 23, 2012 - 5:08 PM

ST. PAUL, Minn. - Minnesota has agreed to turn over to the federal government about $15 million in Medicaid money donated to the state by an HMO last year.

The agreement with the Centers for Medicare and Medicaid Services ends months of speculation about whether the $30 million that UCare returned to the state last year was a voluntary donation — which meant the state could keep the entire payment — or a refund that has to be shared with the federal government.

Human Services Commissioner Lucinda Jesson tells Minnesota Public Radio News ( http://bit.ly/IureVS) the department has since learned that UCare is treating the $30 million as an "administrative expense."

Jesson says if UCare hadn't given the $30 million as a donation, that money would've been returned to the state anyway as part of an agreement the Dayton administration brokered with the health plans to return any excess profits above 1 percent.

Despite the payback, Iowa Sen. Chuck Grassley says he plans to continue his investigation into how Minnesota handled the UCare payment.

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Information from: Minnesota Public Radio News, http://www.mpr.org

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