Policy on 2% federal spending cuts

Medicaid Minnesota previously announced that they would reduce claims by 2% as a result of Federal spending cuts known as sequestration. On further review of the federal sequestration cuts that apply to Medicare payments and the impact on MHCP fee-for-service (FFS) rates, they determined that no MHCP payments for services are required to be reduced by 2% as a result of sequestration. They will begin reprocessing those claims that were reduced to reinstate the 2% as soon as they complete the necessary programming.