Minnesota
Blue Cross of Minnesota agrees to legal settlement for better mental health coverage
Blue Cross and Blue Shield of Minnesota has reached a settlement with the state attorney general over concerns the Eagan-based health insurer failed to comply with laws insisting that health plans cover mental health services the same as they cover treatments for physical health problems.
The Minnesota Blues plan denied any wrongdoing, but agreed to a series of new oversight provisions. In addition, the insurer will operate under new mental and behavioral health care rules that call for prompt decisions on prior authorization requests as well as applications by health care providers to join the health insurer’s network.
Blue Cross will be required to pay a $300,000 civil penalty if a court finds the insurer has violated terms of the settlement, which was announced Friday. In addition, Blue Cross is contributing $600,000 to a center for rural behavioral health at Minnesota State University-Mankato.
“Mental and behavioral health care is health care, period,” Minnesota Attorney General Keith Ellison said in a statement. “We expect someone with a broken leg to be able to get the care they need, and the same should be true of Minnesotans struggling with conditions like depression or substance use disorder.”
Blue Cross said in a statement that it shares Ellison’s commitment to ensuring patients have timely access to “high quality and affordable mental health care.”
“Blue Cross has enhanced our practices related to addressing mental health benefits and access to care to ensure we are meeting the high expectations of members and other stakeholders,” the insurer said. “Today, our strategy is focused on transforming all mental health solutions in ways that can set new industry standards for equitable access to optimal care.”
The settlement is the latest in a series of agreements over the past 18 months between the state and Minnesota health insurers for improved coverage of mental health.
The earlier agreements were prompted by alleged violations of mental health parity laws, which have been adopted over the past two decades to improve patient access to mental health and behavioral health treatments.
Minnesota
Minneapolis considers closing dog park sitting on Indigenous land
Minnesota
Dennis Peterson
With family by his side, Dennis “Bud” Peterson went to be with the Lord on the morning of June 1, 2026.
He was born at Drake, North Dakota on April 2, 1932 in the home of his parents Nick and Helen Peterson. The family moved to Duluth at the beginning of World War II.
After graduation from Duluth Central High School Bud served in the US Army in Korea during the Korean War, and received an Honorable Discharge with the rank of Sergeant. He used his GI Bill benefits to attend UMD receiving an Associate Degree, and also earned his Commercial Instrument Pilot rating.
Bud was a longtime employee of St. Louis County retiring as Supervisor of Roads and Bridges. In retirement he served as Boiler Engineer and a do it all repairman for Duluth Gospel Tabernacle. He generously devoted his time and talents as a consummate do it yourself repairman to all of his family.
Dennis is preceded in death by his parents, Nick & Helen Peterson; brother, Robert Peterson; sister, June (Don) Kruger; and infant brother and sister, James and Delores Peterson.
He is survived by his sister, Carol (Eli) Miletich; and numerous nieces and nephews all of whom he loved dearly.
At Bud’s request, his family will be holding a private funeral service. Arrangements by Dougherty Funeral Home 218-727-3555.
Minnesota
Medical services in limbo for thousands of providers amid Minnesota fraud crisis
The Minnesota Department of Human Services is reexamining over 5,000 Medicaid service providers across the state in an effort to combat fraud.
The federal government said it would pull $2 billion in annual Medicaid funding from Minnesota in January if the state didn’t make changes.
The Minnesota Department of Human Services set out to revalidate thousands of providers in programs deemed high risk for fraud by asking providers to submit verification paperwork and making unannounced site visits. The deadline passed on Sunday.
The latest data, published on May 27, shows 1,009 providers approved, 1,151 disenrolled and over 3,000 providers with pending applications.
Paige Berland and Camille Heyman run Minnesota Behavioral Specialists, providing autism care to children through two locations in the metro area. The women say that after submitting their paperwork, they received letters from DHS with determinations for both locations: the Bloomington center was terminated and the Eagan office was approved.
“It doesn’t make sense, everything is the same minus the location,” Berland said. “So why was one approved and one wasn’t approved?”
The termination letter said the Bloomington center was denied because they failed to disclose a managing employee during a site visit. Berland disputes that and said she already submitted an appeal.
“We were told to keep running, keep continuing as we are while we go through this process,” she said. “It just means that we don’t have the money coming in.”
Josh Berg with Accessible Space says they’re also in limbo. Berg said they offer integrated community supports, which means caretakers provide in-unit assistance for people with spinal cord injuries and disabilities.
“Most of the folks that we support are wheelchair-bound,” Berg said. “Helping with meals, helping with medications, helping them just live their lives.”
Berg said that of the seven locations where people are housed, the Department of Human Services terminated five and approved two. He believes the timeline to conduct this revalidation process was too aggressive. He said Accessible Space has also submitted an appeal.
“We’re not able to bill for services, we’re not able to start new services for anybody or change any of the supports that they receive,” he said.
Both Berg and Berland say they agree fraud needs to be dealt with, but they hope Minnesotans who truly need services aren’t left without the services they need.
“Not just the clients rely on services, but the families do too, so we can’t stop services; that’s not an option on our plate,” Berland said. “We want to continue to provide these services; they are medically necessary.”
The Minnesota Department of Human Services said a disenrollment letter could be sent for a few reasons, including failure to submit revalidation application after two notification attempts, failure to provide all requested documents within the required timeframe and failure to meet the criteria required during an on-site visit.
A spokesperson for the Department of Human Services said it’s currently in the process of compiling data from the thousands of applications, but didn’t say when the department would share those final numbers.
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