Housing Stabilization Providers Report Impact Following Payment Suspensions

(MENAFN- GetNews)


Twyla Martin ImageMedicaid payment suspensions disrupt operations for Housing Stabilization providers and vulnerable clients in Minnesota.

Minneapolis, MN - September 8, 2025 - On August 1, 2025, the Minnesota Department of Human Services (DHS) suspended Medicaid payments to 77 Housing Stabilization Service providers . According to DHS investigator Ashley Stoupe, the suspensions were issued with no specified end date, creating uncertainty for providers and clients statewide.

Providers state that the suspensions followed data-mining reviews described as investigations. While the reviews functioned as audits, suspension notices did not cite specific allegations of fraud. Some agencies report that the loss of Medicaid funding forced them to reduce staff and services, creating challenges in continuing operations.

Home Care Staffing, one of the impacted providers, reported that its suspension notice was linked to a single case among its broader client base. The client later submitted a written statement confirming the accuracy of billing records and services received. Despite this, the agency reports due to immediate payment stop with no timeframe, this resulted in agency collapsing, relocating and laying off 32 staff and over 400 clients from this one agency. The prior announcement of statewide program shutdown, has left companies with an inability to rebuild themselves. Payment reinstatement has not yet been reinstated despite client attesting to correct billing for this specific agency.

Providers and advocates have expressed concern that service interruptions have left many disabled and homeless individuals without stable housing. Some individuals have been hospitalized following disruptions in care. DHS requires a 60-day waiting period before clients can transfer to new providers, leaving many without immediate alternatives.

Federal legal proceedings have been initiated by several providers, including Home Care Staffing. The proceedings relate to the suspension of Medicaid payments and involve managed care organizations such as Health Partners UCare and Hennepin Health. The case is under review regarding due process considerations.

“This situation has created significant challenges for both providers and the people they serve,” said Twyla Martin, spokesperson for Home Care Staffing.“Businesses have been disrupted, clients have been left in limbo, and there is uncertainty about the future.”

Video Interview: Twyla Martin explains the threat to Minnesota's HSS program .

At the time of this release, DHS had not provided additional public comment regarding the suspensions.

About Elevated Providers

Elevated Providers is a Minnesota-based consultancy that supports Housing Stabilization Service providers with compliance, operations, and Medicaid readiness. The organization works with agencies to strengthen audit preparedness, optimize billing, and deliver person-centered services that promote independence and community stability. Learn more at

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