SerpApi.Org
July 21 (UPI) -- The U.S. Department of Health and Human Services said Tuesday it is withholding more than $1 billion from California and Minnesota.
The federal government will withhold more than $867 million in payments from California and more than $200 million from Minnesota on a claim that the states have allowed fraud in their Medicaid programs. It said the states must provide proof that certain claims are legitimate.
"The action advances the Trump administration's effort to combat fraud, waste and abuse in Medicaid and safeguard federal taxpayer dollars," a press release said.
"Medicaid exists to serve vulnerable Americans -- not to bankroll unsupported claims," said HHS Secretary Robert F. Kennedy Jr., in a statement. "Under President Trump's leadership, we are restoring accountability across our public programs and protecting taxpayer dollars. I appreciate CMS Administrator Dr. [Mehmet] Oz's leadership in strengthening Medicaid program integrity and ensuring federal funds are spent as Congress intended. States that receive federal Medicaid funding must demonstrate that every dollar meets federal requirements. When they cannot, we will not release federal funds until they do."
Officials said they have found claims for care for Medicaid recipients who had died and from providers billing an unusually high number of patients. They alleged that California and Minnesota had an especially high amount of fraud.
"If Gov. Gavin Newsom or Gov. Tim Walz wants this funding released, all they have to do is provide basic documentation showing that these services are legitimate and not fraudulent," The New York Times reported Kennedy said at a news conference. "That's common sense."
The federal government previously withheld $243 million from Minnesota since February and $1.3 billion from California since May.
The government has not released that money, said Dan Brillman, deputy administrator and director at the Center for Medicaid & CHIP Services.
"We hope to return funds as soon as they submit and figure out all the documentation," he said at the news conference.
In March, Minnesota filed suit against the administration for withholding Medicaid funds.
"The Trump Administration's M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all," Minnesota Attorney General Keith Ellison said in a statement at the time. "These cuts are the latest in a long series of efforts to go around the law to punish Minnesotans -- but just as we fought back and won when they illegally tried to cut funding for childcare, hungry families and our schools, we are suing them again today to make them follow the law.
