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Trump Officials Withhold $1 Billion in Medicaid Funds From California and Minnesota Over Suspected Fraud
The New York Times • • nation
Key Points:
- The Trump administration announced it is withholding an additional $1 billion in Medicaid funds from California and Minnesota due to suspected fraud in their public health insurance programs.
- Over $867 million from California and about $200 million from Minnesota will be held until the states provide proof that certain Medicaid claims are legitimate.
- Federal officials cited issues such as claims for care provided to deceased enrollees and unusually high billing by health care providers as signs of potential fraud, with particularly severe problems in these two states.
- The administration has been withholding funds since earlier in the year, with $1.3 billion held from California since May and around $250 million from Minnesota since February.
- Governors Gavin Newsom of California and Tim Walz of Minnesota criticized the move as politically motivated, denying evidence of fraud and accusing the administration of targeting their states for political reasons.
