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Vance announces suspension of $1.3 billion in Medicaid payments to California
Vice President JD Vance announced Wednesday that the Trump administration is withholding $1.3 billion in Medicaid payments to California and is threatening to suspend federal funding to all states if they don’t aggressively prosecute fraud in their Medicaid programs.
As part of his role as the fraud czar, Vance said that the administration is targeting California because the state isn’t taking fraud seriously.
“There are California taxpayers and American taxpayers who are being defrauded because California isn’t taking its program seriously, but also you have people who have been prescribed medications that they don’t even need. They’ve had drugs put into their bodies that they don’t need because fraudsters have actually encouraged false prescriptions and false administration of medications,” Vance said at the White House.
Trump administration defers $1.3 billion in Medicaid payments to California amid fraud investigation
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.
The measure, which follows the deferral of more than $350 million in Medicaid reimbursements to Minnesota earlier this year, was among several anti-fraud measures the administration unveiled Wednesday.
The others include reviewing every stateâs 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.
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.
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