Trump Yanks Over $1 Billion in Medicaid Funding From California

Source: The New Republic · Bias: Left

Summary

The Trump administration plans to withhold $1.3 billion in Medicaid reimbursements from California, claiming that the state has not taken alleged fraud tied to its hospice and home health agencies “seriously.”“These fraudulent health care providers are getting rich by giving people medications they don’t even need,” Vice President JD Vance announced at a press conference Wednesday afternoon. “We want California to get serious about this fraud.”Vance argued that states around the country were paying the cost of California’s allegedly blind eye, though California Governor Gavin Newsom vehemently denied that the administration’s attack had anything to do with fraud.“We hate fraud. But that’s NOT what this is,” Newsom wrote in a statement on X. “Vance and Oz are attacking programs that keep seniors and people with disabilities OUT of nursing homes. Pretty sick.”Newsom further claimed that rising costs related to California’s In-Home Supportive Services, or IHSS, which provides more than 730,000 low-income, disabled residents with home-based care, had ultimately saved the federal government money.“Why has IHSS grown in California? It’s simple: Because California is keeping more people OUT of far more expensive nursing homes!” Newsom wrote.The Trump admin has singled out California as the “ground zero” of health care fraud, as the government aims to strangle Medicaid funding around the nation. Vance’s announcement follows actions taken weeks prior by the federal administration that suspended the licenses of 447 hospice facilities and 23 home health agencies around the Los Angeles area, on suspicion of fraud.Vance also said that his anti-fraud unit would “very aggressively encourage states to take Medicaid fraud more seriously” and would soon be issuing letters to all 50 states “that will require them to show that they are aggressively prosecuting Medicaid fraud in their states.”“And if they don’t, we are going to turn off the money,” Vance noted.This story has been updated.

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Trump Yanks Over $1 Billion in Medicaid Funding From California
The New Republic

Trump Yanks Over $1 Billion in Medicaid Funding From California

Left

The Trump administration plans to withhold $1.3 billion in Medicaid reimbursements from California, claiming that the state has not taken alleged fraud tied to its hospice and home health agencies “seriously.”“These fraudulent health care providers are getting rich by giving people medications they don’t even need,” Vice President JD Vance announced at a press conference Wednesday afternoon. “We want California to get serious about this fraud.”Vance argued that states around the country were paying the cost of California’s allegedly blind eye, though California Governor Gavin Newsom vehemently denied that the administration’s attack had anything to do with fraud.“We hate fraud. But that’s NOT what this is,” Newsom wrote in a statement on X. “Vance and Oz are attacking programs that keep seniors and people with disabilities OUT of nursing homes. Pretty sick.”Newsom further claimed that rising costs related to California’s In-Home Supportive Services, or IHSS, which provides more than 730,000 low-income, disabled residents with home-based care, had ultimately saved the federal government money.“Why has IHSS grown in California? It’s simple: Because California is keeping more people OUT of far more expensive nursing homes!” Newsom wrote.The Trump admin has singled out California as the “ground zero” of health care fraud, as the government aims to strangle Medicaid funding around the nation. Vance’s announcement follows actions taken weeks prior by the federal administration that suspended the licenses of 447 hospice facilities and 23 home health agencies around the Los Angeles area, on suspicion of fraud.Vance also said that his anti-fraud unit would “very aggressively encourage states to take Medicaid fraud more seriously” and would soon be issuing letters to all 50 states “that will require them to show that they are aggressively prosecuting Medicaid fraud in their states.”“And if they don’t, we are going to turn off the money,” Vance noted.This story has been updated.

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