The Nansemond Indian Nation has filed a motion in federal court seeking to strike the Commonwealth of Virginia’s opposition to its legal request for a preliminary injunction following the suspension of Medicaid payments to the tribe’s healthcare entity, Fishing Point Healthcare. The tribe asserts that the state’s actions are based on misrepresented documents and a lack of lawful authority.
At the center of the dispute is an April 29 notice issued by Virginia’s Department of Medical Assistance Services (DMAS), suspending Medicaid reimbursements to the tribe due to what the state claimed was a “credible allegation of fraud.” The tribe contends that this notice was based on a selectively edited June 2024 email from the Centers for Medicare & Medicaid Services (CMS), which inaccurately labeled the tribe’s increased billing as a “surge” and omitted relevant context, including references to another tribal provider and the tribe’s formal response.
“The commonwealth’s own records show there was no fraud—only an excuse for unjustified economic retaliation,” said Jessie Barrington, counsel for the tribe and a partner at Cultural Heritage Partners PLLC. “Virginia used an altered federal communication to justify suspending Medicaid payments to a tribal program, violating both federal law and tribal sovereignty.”
According to the tribe, the original, unredacted version of the CMS email—obtained through a Freedom of Information Act request—confirms that the federal agency had merely asked the state to review billing activity, not to initiate any fraud investigation or halt payments.
The Nansemond Indian Nation and Fishing Point Healthcare filed suit on April 1 against the Commonwealth, Governor Glenn Youngkin, and various state health officials, asserting that Virginia made sweeping changes to its Medicaid program without proper federal approval or mandatory tribal consultation. The complaint alleges violations of the Medicaid Act, Indian Self-Determination and Education Assistance Act, Indian Health Care Improvement Act, and the U.S. Constitution’s Supremacy Clause.
Virginia’s response, filed Monday, seeks to dismiss the case, arguing that the tribe is attempting to override state authority in managing Medicaid reimbursements. The state also accused Fishing Point of excessive billing, including claims for over-the-counter medication at federal all-inclusive rates. The tribe firmly denies these claims, emphasizing that the state failed to follow legally required steps for fraud investigations and payment suspensions.
“This is not just a technical dispute—it’s a question of lawful governance and tribal rights,” said Barrington. “The state’s failure to follow federal procedure and its reliance on an altered record represent serious misconduct.”
The tribe maintains that Virginia’s actions are part of a broader pattern of economic suppression targeting its sovereign healthcare operations.
