Trump admin. halts $1 billion in Medicaid payments to California, Minnesota
Summary
The Trump administration is pausing over $1 billion in Medicaid payments to California and Minnesota to review claims flagged for potential fraud. The hold is temporary and states can provide more information to get the funds released.Key Facts
- The administration paused $867.5 million in Medicaid payments to California and $199 million to Minnesota.
- The Centers for Medicare and Medicaid Services (CMS) found spending patterns in California’s in-home care programs that grew faster than national trends.
- Minnesota’s paused funds relate to 14 “high-risk” service areas needing more documentation.
- The funds are not cut but delayed while officials verify the claims meet federal rules.
- The administration launched an anti-fraud task force targeting abuses in federal healthcare programs.
- Earlier, eight people were arrested in a healthcare fraud case involving over $50 million.
- Over 700 hospices in Los Angeles County showed red flags for possible fraud, according to a CBS News analysis.
- Fraud investigations in Minnesota estimate losses could exceed $1 billion.
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