Volume 36, Number 12
DECEMBER 2025
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SHUTDOWN To page 9
Autism services are among those targeted by the audit.
Unintended consequences eyed with state’s Medicaid crackdown With 14 Medicaid programs’ payments on pause and their billing scrutinized, many disability service providers are concerned that a fraud crackdown could have unintended consequences. In the worst case, some service providers could shut down. The audit and payment delays for the programs are on top of the end of one state housing program and major federal cuts to another housing program that many people with disabilities rely on. The actions are seen as threats to housing and an array of supports and services disabled Minnesotans rely on. Gov. Tim Walz announced the Medicaid crackdown this fall, saying the steps are needed to detect suspicious billing activity and allow scrutiny of use of public funds. The effort will
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be in place for 90 days. A requirement of federal funding is that it be disbursed in 90 days. “We cannot effectively deliver programs and services if they don’t have the backing of the public’s trust. In order to restore that trust we are pumping the brakes on 14 programs that were created to help the most disadvantaged among us, yet have become the target of criminal activity,” said Walz. “If you attempt to defraud our public programs and steal taxpayer dollars out from under the people who need them most – you will be stopped, and you will be held accountable.” “We’re taking a systematic approach to finding and stopping fraud,” said temporary Human Services Commissioner Shireen Gandhi. MEDICAID To page 7
Significant financial losses lead to UCare's end by Jane McClure It’s the end of an era as UCare winds down its operations. The longtime health care coverage provider announced November 17 that about 300,000 of its Minnesota and western Wisconsin clients receiving Medicaid and Affordable Care Act (ACA) benefits will be switched to health insurance provider Medica. UCare has long been a source of health care coverage for low-income Minnesotans, elders, people with disabilities and people who must pay for their own coverage. It grew to become one of the state’s largest health insurance providers. A news release announced that Medica will acquire “certain contracts and assets of UCare.” The agreement reached between the companies will require regulatory approvals including approval from the Minnesota Attorney General’s Office. Service for clients is to continue without interruption for those enrolled in UCare Medicaid and individual and family plans. “As a nonprofit, community-focused health plan, Medica has a long history of serving members in Minnesota, guided by
UCARE
Upcoming regulatory changes, increased operating costs and staffing challenges are forcing a St. Paul-based home health care company to wind down operations. It’s a troubling development. Does it portend more closings in the future? Dependable Home Health Care, which has offices in the capital city’s Empire Builder Business Park, filed its notice of closing in early November. The filing with the Minnesota Department of Employment and Economic Development (DEED) indicated that layoffs will take place in six phases between January and March 2026. Client care will wind down by end of January. Caregivers will be done on February 6. Administrative staff layoffs will continue into mid-March. Dependable Home Health Care was founded in 1991. The company provides in-home caregiver services to people with disabilities and elders. More than 400 jobs will be affected. One media report indicated that 368 workers are in direct contact with clients as direct support professionals, personal care assistants, support workers and program assistants. A worker who didn’t want her name used said that she and others were shocked to learn of the closing. She is concerned about finding another job, but is more worried about her disabled clients and what will happen to them as they try to find new care options. The company has indicated that it will work with employees to find new jobs. The company will also work with their clients and client families to get through a transition without interrupting care. “Based on business challenges and upcoming regulatory changes impacting the Minnesota home care industry, Dependable has made the decision to close the company permanently,” Dependable Home Health Care CEO Katie Fleury stated in a letter to DEED announcing the closing. Reductions in allowable service hours and lower rates for overnight care are among those changes. But the Minnesota Department of Human Services (DHS) issued a statement, saying it received notice of the company’s closure before the state’s audit program of numerous programs was announced. Gov. Tim Walz in late October announced a third-party audit and paused payments for more than a dozen programs, as a means of detecting Medicaid fraud. (See related story.) Minnesota officials have cautioned that the audit could result in payments being delayed up to 90 days, even for services that are found to be in compliance. According to DHS, most the services Dependable Home Health Care provides would not have been subject to prepayment review. Minnesota has lost several Personal
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Dependable announces shutdown
A fun UCare ad featured a team of cyclists touring the state. our mission and trusted relationships with providers, customers and members,” said Lisa Erickson, CEO of Medica. “Now we have
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the opportunity to build upon both Medica’s strengths and UCare’s legacy, allowing UCARE To page 12
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