BAKERSFIELD, Calif. (KBAK/KBFX) The Trump administration is pausing more than $1 billion in Medicaid payments to California and Minnesota as part of what it calls a crackdown on fraud in federal programs, a move that is drawing sharp pushback from California leaders and raising concerns among residents who rely on the safety-net coverage.
“It’s very difficult for anyone on any part of the political spectrum to think it makes sense to throw money away, especially since we think there are foreign multinational organizations involved in some of this weaponized fraud,” Dr. Oz said.
Trump administration pauses over $1B in Medicaid payments to California, Minnesota amid fraud probe (Photo by Spencer Platt/Getty Images)
For California, the administration is holding back $867.5 million after reviews conducted by the Center for Medicare and Medicaid Services identified claims that require an additional look before federal matching funds can be distributed to the state.
Gov. Gavin Newsom responded in a post on X, saying, “California isn’t being targeted because Trump has evidence of fraud. We are targeted for political reasons and because Dr. Oz doesn’t understand that we are saving taxpayers money by keeping seniors and people with disabilities out of far more expensive nursing homes! We hate fraud that’s not what this is.”
Tal Eslick, owner of Vista Consulting, said politics may be playing a role in the dispute.
“There’s a part of this that is probably blatantly political, right. I think this is yet another scrap between California and the White House,” Eslick said.
Eslick also said the review process could give California an opportunity to identify and eliminate fraud if it exists.
Trump administration pauses over $1B in Medicaid payments to California, Minnesota amid fraud probe (Photo by David Berding/Getty Images)
“If there’s accusations of fraud let’s go about doing the work to make sure that the fraud is addressed and it’s identified and ultimately worked out of the system so that those recourses can go towards the California families that are in dire need of them,” he said.
The stakes are high for communities across the state.
The California Department of Health Care Services says more than 52% of people in Kern County rely on Medicaid services.
Bakersfield resident Brittney Berrigan, who depends on the program, said continued coverage is critical.
Trump administration pauses over $1B in Medicaid payments to California, Minnesota amid fraud probe (Photo by Joe Raedle/Getty Images)
“Now that I’m able to it’s been a big blessing and a big worry off of my shoulders. So, I wish that they would keep it going,” Berrigan said.