WASHINGTON\u00a0\u2014\u00a0The Trump administration is deferring an additional $1.2 billion in Medicaid reimbursements to California, citing concerns about potential fraud in a state program that helps older adults and people with disabilities with everyday tasks.<\/p>\n
Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said federal officials took action after they grew concerned about the rapid expansion of California\u2019s personal care services program in recent years. State officials were notified of the decision Tuesday, he said.<\/p>\n
\u201cCalifornia has been growing that program 24% in the last three years. That is twice the rate of every other state average in the country,\u201d Oz said. \u201cImpossible for us to understand how that could be so we are taking major action in California.\u201d<\/p>\n
Oz did not provide any evidence of fraud but suggested the state was paying people too much taxpayer money to help with services that could be offered for free, like \u201cpaying somebody to carry groceries upstairs for your mom.\u201d<\/p>\n
\u201cMany of you would carry groceries upstairs for your mom for free, but in California, they will pay you a lot of money for it,\u201d he said.<\/p>\n
The move is the latest in a series of efforts by the administration to withhold federal money from California. In May, the administration held back $1.3 billion <\/a>in Medicaid reimbursements to the state over concerns about \u201cfraudsters\u201d in the state\u2019s hospice and in-home care programs. The actions have been part of a broad effort by the administration to rein in fraud in federal healthcare benefits programs, particularly in Democrat-led states.<\/p>\n Democratic Sen. Alex Padilla criticized the administration\u2019s decision.<\/p>\n \u201cThis Administration\u2019s track record speaks for itself: Fewer people have health insurance, premiums are up, and drug costs are higher. This decision will hurt older Californians, people with disabilities, and those recovering from illness or injury,\u201d Padilla said in a statement. \u201cThe American people deserve better, and I\u2019ll keep fighting against their attacks.\u201d<\/p>\n Gov. Gavin Newsom\u2019s office did not immediately respond to a request for comment. But the office has been critical of the administration\u2019s past efforts.<\/p>\n In May, Newsom\u2019s office called the action to withhold funds for in-home care programs a \u201csick\u201d and politically motivated attack on services that are meant to \u201ckeep seniors and people with disabilities OUT of nursing homes.\u201d<\/p>\n Those services usually cover assistants who help people with daily tasks such as bathing, laundry or cooking. They also provide needed care such as injections under the direction of a medical professional. A 2020 report by the California state auditor<\/a> found that nearly three-quarters of In-home Supportive Services caregivers assist a family member.<\/p>\n Newsom\u2019s office, however, has argued that the program saves taxpayers money, saying IHSS care costs $30,000 a year, while nursing home care costs $137,000 a year.<\/p>\n California\u2019s hospice industry has had problems in the past and authorities have tried to crack down on the issue. A Times investigation in 2020 found <\/a>that providers were billing Medicare for hospice services and equipment for patients who were not actually dying while the industry boomed.<\/p>\n The Trump administration, led by Vice President JD Vance, has tried to focus attention on the issue of waste, fraud and abuse as a centerpiece policy platform to bring down healthcare costs.<\/p>\n