{"id":667790,"date":"2026-05-14T00:22:12","date_gmt":"2026-05-14T00:22:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/667790\/"},"modified":"2026-05-14T00:22:12","modified_gmt":"2026-05-14T00:22:12","slug":"trump-administration-defers-1-3-billion-in-medicaid-payments-to-california-amid-fraud-investigation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/667790\/","title":{"rendered":"Trump administration defers $1.3 billion in Medicaid payments to California amid fraud investigation"},"content":{"rendered":"<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp48c0uf000x29p0awnygz4u@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            In its latest effort to crack down on fraud in federal healthcare programs, the Trump administration is deferring $1.3 billion in Medicaid payments to California, Vice President JD Vance announced Wednesday.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4f9o9q0007356rtac0eexp@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The measure, which follows the deferral of more than $350 million in Medicaid reimbursements to <a href=\"https:\/\/www.cnn.com\/2026\/02\/25\/politics\/trump-vance-minnesota-medicaid\" rel=\"nofollow noopener\" target=\"_blank\">Minnesota <\/a>earlier this year, was among several anti-fraud measures the administration unveiled Wednesday.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4iuprk00003b6r4ys95g7e@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The others include reviewing every state\u2019s Medicaid Fraud Control Unit, which is tasked with investigating and prosecuting fraud among Medicaid providers, and placing a six-month nationwide moratorium on new enrollment of hospice and home health providers in Medicare.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4ft0qh000c356rdcakqu8a@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            While the administration has been criticized for focusing its anti-fraud efforts primarily on Democratic-led states, Vance insisted that its intentions are not political in nature.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4fwnc4000e356r7db5qem3@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cWe want to protect Medicaid. We want to protect Medicare,\u201d Vance said at an event on the White House campus. \u201cBut we can\u2019t do that if the states that are administering those programs are allowing those programs to be fleeced by fraudsters.\u201d\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4fz8s9000g356rdrexy5aa@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            However, Vance and Centers for Medicare and Medicaid Services administrator Dr. Mehmet Oz criticized several blue states, including California, Minnesota, New York and Hawaii, for not taking fraud seriously enough. If all states don\u2019t step up to prosecute fraud through their Medicaid Fraud Control Units, they could lose their federal support for the program, which totals nearly $500 million.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4ig8qy0013356rb7673ds7@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            State attorneys general received letters from the Department of Health and Human Services Office of Inspector General on Wednesday about its stepped up oversight of the state units.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4ihxmd0015356ri4vbqhmi@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cNoncompliance with your MFCU obligations can take your State\u2019s entire Medicaid program out of compliance,\u201d read a letter to California Attorney General Rob Bonta, which CNN viewed. \u201cThis means your failure to do your job as head of the MFCU has put all of your State\u2019s Medicaid funds in jeopardy.\u201d\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4j7vpm00033b6rwevikxj2@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            <a href=\"https:\/\/www.wsj.com\/politics\/policy\/trump-jd-vance-medicaid-fraud-40e9e78e\" target=\"_blank\" rel=\"nofollow noopener\">The Wall Street Journal<\/a> first reported on the letters sent to state attorneys general.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4gjupn0004356rhgsx4w94@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The announcements come the day before Vance is scheduled to visit Maine to discuss the administration\u2019s moves to combat fraud \u2013 which has become a talking point for Republicans as they head into the midterm elections in November.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp100073b6rfrt9iq0i@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            President Donald Trump referenced Maine as a hotbed of fraud in his State of the Union address in February.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp1000a3b6rd7bd4h8x@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Oz that month sent a letter to Maine Gov. Janet Mills, a Democrat, citing concerns about the state\u2019s Medicaid-funded treatment program for children with autism and demanding information about what the state is doing to identify and prevent fraud, as well as to recover stolen or misspent funds. Mills called the effort a \u201cpolitical attack.\u201d\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp100083b6r0e2cre0j@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Maine\u2019s Senate race, where GOP Sen. Susan Collins is running for a sixth term, is expected to be among the most competitive races this year.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp100043b6rlwwjdp36@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            California has been in Oz\u2019s sights for months. The administrator has filmed several videos in the Los Angeles area alleging widespread fraud among hospice providers and demanded information from Gov. Gavin Newsom, a Democrat who has frequently tangled with the Trump administration.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4gxcpc000p356rymbll7zd@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Oz has become one of <a href=\"https:\/\/www.cnn.com\/2026\/05\/04\/politics\/dr-oz-trump-medicare-medicaid-fraud\" rel=\"nofollow noopener\" target=\"_blank\">Trump\u2019s top lieutenants <\/a>in the battle against fraud. He estimates that fraud, waste and abuse in federal healthcare programs total $100 billion. His efforts largely focus on areas that have seen large increases in billing or in providers participating in the programs.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4h1l09000r356rov41wut2@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            CMS is scrutinizing billing from California providers who are outliers in terms of size \u2013 \u201cnumbers so big you can\u2019t imagine anyone billing for these numbers of patients and that much for each patient,\u201d Oz said Wednesday.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4hvxtc000w356robtnqxu0@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cSo we\u2019re asking California to clarify for us how it got there,\u201d he continued, noting that the growth of spending in personal care and home services is twice the rate of the average of the rest of the US.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4i0ebi0000356rr0bml04r@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The agency is also investigating expenditures for undocumented immigrants.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4kld1z000i3b6rumzh60ji@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Newsom\u2019s office pushed back on Oz\u2019s claim of potential fraud, arguing that billing for supportive services in homes has grown because the state is focused on minimizing the number of people sent to nursing homes.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4kbkb1001m356r3lkk4nlv@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cWe hate fraud. But that\u2019s NOT what this is,\u201d the office <a href=\"https:\/\/x.com\/govpressoffice\/status\/2054620089744273482?s=12&amp;t=EbV07uzBbRcOnQ8ti0thOQ\" target=\"_blank\" rel=\"nofollow\">posted <\/a>on X. \u201cVance and Oz are attacking programs that keep seniors and people with disabilities OUT of nursing homes. Pretty sick.\u201d\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4jmvnc00083b6ryj62xbhz@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            At least one Medicaid fraud expert questioned how effective withholding funds would be in fighting fraud.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4jnnwp000a3b6r33mvvf06@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cIt\u2019s not at all clear how deferring $1.3 billion will actually reduce fraud against California\u2019s Medicaid program or help the millions of Californians who rely on Medicaid for access to care and protection against medical debt,\u201d said Andy Schneider, research professor at Georgetown University.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4g4p4r000i356r1zy2rkfd@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            California is not the only state with potential fraud problems, particularly in its hospice programs.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4gj2m70002356r5d9gpbsl@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cWe\u2019ve seen systemic and deeply troubling fraud in the hospice and home health space, with bad actors exploiting some of our most vulnerable Medicare patients and stealing money from the American taxpayer,\u201d Oz said in a statement announcing the hospice moratorium earlier on Wednesday.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp100053b6rar0a69vc@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cToday we\u2019re shutting the door on fraud\u2014preventing new bad actors from entering Medicare while we aggressively identify, investigate, and remove those already exploiting them.\u201d\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp1000b3b6rngo1ven6@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Earlier this year, CMS placed a similar six-month nationwide moratorium on certain companies that provide durable medical equipment, such as wheelchairs, hospital beds and oxygen equipment \u2014 an industry it says is also rife with fraud.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp1000c3b6r8jo2o6ka@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Oz has focused his hospice anti-fraud efforts in the Los Angeles area. He believes at least half of the hospices there are fraudulent, noting Wednesday that the agency has suspended 800 hospices that billed Medicare $1.4 billion last year.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4it8wi001e356rzerzloey@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cThat\u2019s getting us close to where we think we should be,\u201d he said, noting that few of them have reached out to CMS to complain that they were shut down.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp1000d3b6rhgnmocgw@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            In addition to these anti-fraud efforts, CMS has also revoked or deactivated hundreds of hospices and home health agencies it says engaged in fraud or improper activity; increased oversight of new hospice providers in Arizona, California, Georgia, Ohio, Nevada and Texas; expanded reviews of home health agency claims in Florida, Illinois, Oklahoma, Ohio, North Carolina and Texas; and conducted hospice site visits.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp1000e3b6ru4dbimtf@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            However, the new moratorium announced Wednesday could hurt legitimate providers of hospice services and limit patients\u2019 access to care, the National Alliance for Care at Home said in a statement.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp1000f3b6roivbghqj@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cAn enrollment moratorium raises serious access-to-care concerns in areas where patient demand is growing or existing capacity is already strained, leading to longer wait times, reduced service availability, and fewer choices for patients \u2013 particularly in rural or underserved communities,\u201d the alliance said.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp492yp1000g3b6rlfhh8pq5@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The group added that it and other national organizations have provided CMS with recommendations and targeted strategies for stopping bad actors from entering Medicare and Medicaid, while not overly burdening good-faith providers.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmp4jsuj7000c3b6rhr1y4f3o@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            This headline and story have been updated with additional developments.\n    <\/p>\n","protected":false},"excerpt":{"rendered":"In its latest effort to crack down on fraud in federal healthcare programs, the Trump administration is deferring&hellip;\n","protected":false},"author":2,"featured_media":667791,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[49,48,84,392],"class_list":["post-667790","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-ca","tag-canada","tag-health","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/667790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=667790"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/667790\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/667791"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=667790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=667790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=667790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}