Trump administration withholds $1.3 billion from California in Medicaid payments, announced this Wednesday the Vice President of the United States, JD Vance.
The official threatened to suspend federal government funding to all states if they do not vigorously pursue fraud in their respective Medicaid programs.
Vance assured that The Trump administration is targeting California after considering that the Golden State was not taking the fraud seriously.
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“There are California taxpayers and American taxpayers who are being defrauded because California is not taking its program seriously; But, in addition, there are people who have been prescribed medications that they do not even need,” Vance declared at a press conference.
“They have been given drugs that they did not require, since scammers have encouraged the issuance of fake prescriptions and the fraudulent administration of medications,” added the vice president, in statements he made at the White House.
It wouldn’t be the first time that President Donald Trump’s government takes such a measureafter the one it adopted in February of this year, when it suspended Medicaid payments to Minnesota.
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Vance said that the government is notifying all 50 states that it could freeze funding destined for their Medicaid Fraud Management Units if fraud in said program is not vigorously pursued.
These units, present in each state, They are responsible for investigating and prosecuting fraud cases committed by Medicaid service providers.
“We are going to cut off the flow of funds that these anti-fraud units receive“, warned the vice president, in case they do not do their job.
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JD Vance announced that, if irregularities continue to be detected, They could also suspend states from other resources within their respective Medicaid programs..
“Today, we have ‘red’ states and ‘blue’ states that are aggressively combating fraud. Unfortunately, however, We also have some states—mostly ‘blue, unfortunately—that don’t take Medicaid fraud very seriously.“, said.
The vice president mentioned that they want to protect Medicaid, but clarified that they cannot achieve this if they allow the states in charge of administering the programs let the scammers steal with impunity.
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“That’s why we urge everyone—whether you’re California, New York, Maryland or Ohio—to work with us. We want to help them use technology and other tools to eradicate fraud and attack the root problem,” said Vance.
Regarding withholding payments to California, Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, said that State records have raised major red flags.
According to Oz, the federal government needs California clears up $630 million in billing, $500 million in home health services and $200 million in “questionable spending” tied to coverage for undocumented immigrants.
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“It’s the biggest postponement we’ve ever made.. We do it for a good reason. We would like the state, at least, to sit at the table and explain to us how these atypical payments have been generated,” said Oz.
Following the announcement by federal officials, in California, Governor Gavin Newsom’s office criticized Vance and Ozen for social media posts.
“One more time, California seems to be targeted solely for political reasons“California Attorney General Rob Bonta wrote in a social media post.
Keep reading:
· Minnesota sues federal government for withholding $259.5 million in Medicaid funds
· Tim Walz presents anti-fraud package to recover suspended Medicaid funds to Minnesota
· The crisis is pressing: fewer Americans enroll in health insurance due to rising costs
