RFK Jr pauses $1bn Medicaid funding to California and Minnesota
Summary
The U.S. Department of Health and Human Services has stopped over $1 billion in Medicaid payments to California and Minnesota because of suspected fraud and rule breaking. The department is asking the states to prove the payments are valid before releasing the money.Key Facts
- More than $867 million in funding to California and about $200 million to Minnesota have been paused.
- Earlier in the year, $243 million in Medicaid payments to Minnesota was also paused.
- The department uses artificial intelligence and advanced tools to find possible fraud in Medicaid payments.
- Most suspected fraud in California is connected to in-home care services for disabled people.
- Vice President JD Vance has threatened to stop funds to states that do not cooperate with a federal fraud task force.
- The department is expanding its power to remove individuals or groups who commit fraud from federal healthcare programs.
- CMS Administrator Mehmet Oz stated the payments have been misused by criminals and the government will not pay claims suspected of fraud.
- Minnesota has sued the Department of Health and Human Services over the withholding of Medicaid funds.
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