Vice President JD Vance is set to announce that $259.5 million in Medicaid reimbursements to Minnesota will be withheld while federal officials conduct a fraud investigation, along with a nationwide halt on new firms seeking Medicare subsidies for durable medical equipment such as canes and walkers, The Post has learned.

Vance will make the announcement alongside Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, a day after President Trump declared a “war on fraud” during his State of the Union address.

The decision to suspend reimbursement payments to Minnesota affects nearly half of the claims submitted by the state for its Medicaid program serving low-income residents during the most recent fiscal quarter.

The action, described as a “deferment,” targets 14 state-run programs flagged as particularly vulnerable to fraudulent activity. These include services such as autism treatment, in-home rehabilitation, non-emergency medical transportation and overnight supervision. Some of those programs have previously been linked to a major fraud case in the Twin Cities area.

An administration official said Medicaid reimbursements for Minnesota will remain on hold until “further investigation is completed” into potential improper billing practices.

Earlier this year, the Trump administration announced a broader review of Medicaid payments, pausing certain future disbursements to multiple states while investigations were underway. In January, social-services funding was temporarily frozen for five Democrat-led states, including Minnesota and New York. The latest move, however, goes further by affecting claims that have already been submitted for reimbursement.

Separately, the administration is introducing a new policy that will block additional companies from newly enrolling in Medicare’s reimbursement system for durable medical equipment.

Federal officials reported that last year durable medical equipment billing carried an error rate of roughly 20%, amounting to about $1.5 billion in questionable charges. Of that total, approximately $1 billion is believed to involve fraudulent claims, according to officials.

The temporary freeze on new enrollments is intended to give regulators time to scrutinize companies already participating in the program and remove those engaged in improper conduct.

While the Minnesota Medicaid action centers on a Democrat-led state, officials noted that problems tied to Medicare equipment billing are largely concentrated in Republican-led states. One official pointed to elevated levels of suspected fraud in South Florida and in Harris County, Texas.

During his State of the Union address, Trump said Vance would oversee a nationwide campaign to combat misuse of federal benefit programs.

“I am officially announcing the war on fraud to be led by our great vice president, JD Vance,” Trump said, predicting, “we will actually have a balanced budget overnight. It will go very quickly. That’s the kind of money you’re talking about.”

{Matzav.com}