HHS withholds $867 million in Medicaid payments to California as part of 'crackdown on fraud'

Key Points:

• The Trump administration, through Health and Human Services Secretary Robert F. Kennedy Jr., withheld $867.5 million in Medicaid payments to California and deferred $199 million to Minnesota, citing concerns about fraud in services such as in-home health care.
• CMS Administrator Dr. Mehmet Oz highlighted that California's spending on in-home health services increased at more than double the national average, and flagged issues with care provided to individuals with questionable immigration status.
• California Governor Gavin Newsom's office condemned the move as a politically motivated stunt, asserting that the state is saving taxpayer money by providing in-home care and expressed willingness to collaborate with federal authorities on fraud prevention.
• The California Attorney General's office is reviewing the payment deferrals and fraud allegations, pledging to challenge any unlawful actions that threaten residents' access to critical services.
• Despite political tensions, state audits have identified Medi-Cal eligibility discrepancies, though a 2020 audit found no integrity concerns in in-home care, and California's approach had prior federal approval; Newsom and Oz have a history of public disputes over fraud accusations.