Minnesota Medicaid revalidation: Families of disabled adults fear losing services

(FOX 9) – Families and service providers across Minnesota are facing uncertainty after the state’s Medicaid revalidation process left thousands without funding.

Longtime provider cut off after decades of service

What we know:

Options Inc. in Sherburne County supports nearly 200 people with developmental disabilities, helping some find work and others live more independently.

The organization has existed since 1979, and relies heavily on Medicaid funding, which was recently cut off due to the state’s effort to revalidate providers and prevent fraud.

Colene and Dan Verdick, whose 29-year-old daughter Hannah attends Options, said the loss of services is taking a toll.

“It’s very stressful,” said Colene Verdick, a parent of an Options Inc. participant.

“We don’t know what life without it would be like. I mean, we had a small taste of it during COVID, and it was not good,” said Colene Verdick.

“Nope, she was miserable,” said Dan Verdick.

Options Inc. is one of about 3,400 providers statewide that lost Medicaid funding in the process.

Rep. Natalie Zeleznikar said, “to just shut off the spigot and terminate everybody, that means you put all the good providers in the bad apple bag, and that’s wrong.”

Medicaid service providers looking for answers

Throughout Minnesota roughly 3,400 Medicaid service providers are trying to prove the legitimacy of their services after the state disenrolled roughly 60% of its providers. FOX 9’s Corin Hoggard has the details.

The revalidation process and provider appeals

Timeline:

Options Inc. began the revalidation process in May 2025, received a response in April 2026, and submitted all required documents by May 20.

The Department of Human Services (DHS) said this did not give them enough time to finish the revalidation review, including a site visit.

“We should have had this revalidation done in June of 2025. I hate to have to put families and providers through all of this stress and heartache,” said Brenda Geldert, executive director of Options Inc

The state revalidated about 37% of providers, referred 1% for inspector general’s investigations, and allowed most others to appeal their disenrollment.

Rep. Zeleznikar is urging Gov. Walz to treat the situation as an emergency and create an incident command center.

DHS response and ongoing issues

The other side:

DHS has responded to FOX 9 about other providers profiled recently, saying most have minor paperwork issues to resolve.

One provider in Rep. Zeleznikar’s district has been revalidated. However, Bella Mente says the state’s system still won’t allow them to submit bills for their services.

Options Inc. and other organizations are waiting for answers, while families like the Verdicks worry about the impact on their loved ones’ daily lives.