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Vance announces suspension of $1.3 billion Medicaid payments to California

  

Category:  News & Politics

Via:  split-personality  •  6 months ago  •  44 comments

By:   Rebecca Shabad

Vance announces suspension of $1.3 billion Medicaid payments to California
As part of his role as the fraud czar, Vance said that the administration is targeting California because the state isn’t taking fraud seriously.

S E E D E D   C O N T E N T



Vice President JD Vance announced Wednesday that the Trump administration is withholding $1.3 billion in Medicaid payments to California and is threatening to suspend federal funding to all states if they don’t aggressively prosecute fraud in their Medicaid programs.

As part of his role as the fraud czar, Vance said that the administration is targeting California because the state isn’t taking fraud seriously.


“There are California taxpayers and American taxpayers who are being defrauded because California isn’t taking its program seriously, but also you have people who have been prescribed medications that they don’t even need. They’ve had drugs put into their bodies that they don’t need because fraudsters have actually encouraged false prescriptions and false administration of medications,” Vance said at the White House.

The move is similar to the one the administration took in February   suspending Medicaid payments to Minnesota .

Vance said that the administration is also notifying all 50 states that it could freeze funding to their Medicaid Fraud Control Units “if they do not aggressively prosecute Medicaid fraud.” The units, which exist in each state, investigate and prosecute Medicaid provider fraud. “We are going to turn off the money that goes to these anti-fraud units,” he said, if they fail to do their job.

He also warned, “And if we continue to find problems, we can turn off other resources within their state Medicaid programs as well.”

“Now, we have red states and blue states that go after fraud aggressively. But we also unfortunately have some states — mostly blue states, unfortunately — that do not take Medicaid fraud very seriously,” the vice president said.

“We want to protect Medicare. But we can’t do that if the states that are administering those programs are allowing those programs to be fleeced by fraudsters,” Vance said. “So we encourage, whether it’s California or New York or Maryland or Ohio, we encourage people to work with us. We want to help you use technology and other tools to get rid of the fraud, to get to the root of the fraud.”

Addressing the deferral of reimbursements to California, Dr. Mehmet Oz, the Centers for Medicare & Medicaid Services administrator, said that the state’s Medicaid records “have generated “major red flags for us.” Oz said that the administration needs California to clarify $630 million in billing, $500 million in home health service and $200 million in “questionable expenditures” linked to coverage for undocumented immigrants, he claimed. They are not eligible for Medicaid, however.

“It’s the largest deferral we’ve ever made,” Oz said about the decision to suspend 1.3 billion in Medicaid payments. “We’re making it for a good reason. We’d like the state to at least come to the table and explain to us how these outlier payments have been generated.”

The offices of California Gov. Gavin Newsom and California Attorney General Rob Bonta, both Democrats, didn’t immediately respond to requests for comment. NBC News also reached out to California’s Department of Public Health.

Oz also announced as part of these anti-fraud actions that the   CMS is imposing a 6-month moratoria on new Medicare enrollment for hospices and Home Health Agencies (HHAs) . CMS said that during that period, it will “intensify targeted investigations, deploy advanced data analytics, and accelerate the removal of hospice and HHA providers from the Medicare program that are suspected of committing fraud.”


The White House and CMS didn’t immediately respond to requests for further comment.

This article was originally published on   NBCNews.com

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Split Personality
Professor Participates
1  seeder  Split Personality    6 months ago

More partisan governance.

Why bother with retributions when the "boss' will only pardon them in the end, maybe after a hefty campaign donation or yuge purchase of the Trump family operated Crypto fund he pleads ignorance about.

 
 
 
Gsquared
Professor Expert
1.1  Gsquared  replied to  Split Personality @1    6 months ago

We take fraud seriously.  We know that Trump and Vance are total frauds.

 
 
 
MrFrost
Professor Guide
1.1.1  MrFrost  replied to  Gsquared @1.1    6 months ago
We know that Trump and Vance are total frauds.

That's like # 15 on the list of shit that's wrong with these fuckers.

 
 
 
Vic Eldred
Professor Principal
1.1.2  Vic Eldred  replied to  Gsquared @1.1    6 months ago
We take fraud seriously. 

How is that high-speed rail service coming? I may want to get to Merced someday.

One more question: Is emergency Medi-Cal coverage granted to illegal migrants?

 
 
 
Dismayed Patriot
Professor Quiet
1.1.3  Dismayed Patriot  replied to  Vic Eldred @1.1.2    6 months ago
How is that high-speed rail service coming?

A little better than conservative Christian's search for God. At least they've proven that high speed rail exists.

Is emergency Medi-Cal coverage granted to illegal migrants?

Yes, as it should be because true patriotic Americans aren't callous bigoted dick heads that are willing to just let other humans die simply because they didn't have the correct papers.

 
 
 
Trout Giggles
Professor Principal
1.1.4  Trout Giggles  replied to  Dismayed Patriot @1.1.3    6 months ago

Why is CA's high speed rail a topic in this seed? 

I know you didn't bring it up.

 
 
 
Vic Eldred
Professor Principal
1.1.5  Vic Eldred  replied to  Dismayed Patriot @1.1.3    6 months ago

If California wants to provide aid to illegal migrants, let them do it with state money. They have no right to misuse federal funds.

 
 
 
Vic Eldred
Professor Principal
1.1.6  Vic Eldred  replied to  Trout Giggles @1.1.4    6 months ago

Because the topic is fraud

 
 
 
MrFrost
Professor Guide
1.1.7  MrFrost  replied to  Vic Eldred @1.1.5    6 months ago

If California wants to provide aid to illegal migrants, let them do it with state money. They have no right to misuse federal funds.

This country was built by immigrants and do you think Jesus would shun people based on their immigration status? Um, no, never in a million years. 

 
 
 
MrFrost
Professor Guide
1.1.8  MrFrost  replied to  Vic Eldred @1.1.6    6 months ago

Because the topic is fraud

Trump is nothing BUT fraud. He has made HOW much since he has been in office? Not going to answer that, you look it up but it's BILLIONS of dollars and pretty sure presidents aren't supposed to make money while president....but I am 100% sure you are ok with it, (or will deflect). 

 
 
 
Split Personality
Professor Participates
1.1.9  seeder  Split Personality  replied to  Vic Eldred @1.1.2    6 months ago
How is that high-speed rail service coming? 

Who in Maine cares?  How long did the Big Dig in Boston overrun time and budget?

I may want to get to Merced someday.

No one cares.

One more question: Is emergency Medi-Cal coverage granted to illegal migrants?

Yes it's the logical extension of Reagan's law making it illegal to turn away anyone from an ER.

Next?

 
 
 
Split Personality
Professor Participates
1.1.10  seeder  Split Personality  replied to  Vic Eldred @1.1.5    6 months ago
They have no right to misuse federal funds.

tell it to all the Republicans who voted for Regans Omnibus in 1987.

eCgvJl1QRtQFRkpvWTUD2vjLsqQ.svg

Reagan’s Law on Emergency Rooms — EMTALA

President   Ronald Reagan signed the Emergency Medical Treatment and Active Labor Act (EMTALA)   into law on   April 7, 1986   as part of the Consolidated Omnibus Budget Reconciliation Act (COBRA)   Wikipedia . The law was enacted in response to widespread criticism of hospitals refusing or transferring unstable emergency patients for financial reasons — a practice known as “patient dumping”   Wikipedia +1 .

What EMTALA Requires

EMTALA applies to   Medicare-participating hospitals , which is nearly all U.S. hospitals because they accept Medicare payments   Wikipedia +1 . Under the law:

  • All patients   — regardless of ability to pay, immigration status, or insurance coverage — must receive an   appropriate medical screening examination (MSE)   in the emergency department   Wikipedia +1 .

  • Hospitals may   not transfer or discharge   patients needing emergency treatment unless:

    1. The patient has given   informed consent , or

    2. The patient’s condition is   stabilized , or

    3. Transfer is necessary because the hospital lacks the resources to treat the patient   Wikipedia .

Scope and Impact

  • The law   does not require   hospitals to provide all forms of health care — only   emergency care   Snopes.com .

  • It applies to   everyone , including undocumented immigrants, because most hospitals are Medicare-participating   Snopes.com .

  • Violations can result in   fines, exclusion from Medicare/Medicaid , and civil liability   Nursing CE Central .

Historical Context

While Reagan’s administration promoted limited federal involvement in health care, EMTALA was a targeted federal intervention to protect access to emergency services   factually.co . The law was passed after high-profile cases showed hospitals failing to screen and stabilize unstable patients, often sending them to larger hospitals for financial gain   Nursing CE Central .

In short:   Reagan’s law — EMTALA — ensures that emergency rooms must treat anyone who comes in, no matter their financial situation or immigration status, and cannot simply turn away or transfer unstable patients without proper consent or stabilization   Wikipedia +2 .

 
 
 
Split Personality
Professor Participates
1.1.11  seeder  Split Personality  replied to  Vic Eldred @1.1.6    6 months ago

Then try to stick to the topic and stop gaslighting my readers.

 
 
 
Vic Eldred
Professor Principal
1.1.12  Vic Eldred  replied to  Split Personality @1.1.11    6 months ago

I'll tell you what: I'll take up the topic elsewhere where it is an open discussion.

Have a good one.

 
 
 
Split Personality
Professor Participates
1.1.13  seeder  Split Personality  replied to  Vic Eldred @1.1.12    6 months ago

I NOTICED THAT YOU DID NOT WANT TO COMMENT ON THE AMOUNT OF MEDICARE FRAUDSTERS PARDONED BY 

MR TRUMP JUST IN THES PAST TWO YEARS.

YOUR WHINNING ABOUT ILLEGALS TAKING ADVANTAGE OF THE SYSTEMS IS GASLIGHTING.

MEDICARE FRAUD TAKES PLACE MOSTLY IN LARGE MEDICAL GROUPS BY UNSCROUPULOUS DOCTORS, LAWYERS AND BUSINESS MANAGERS AND CEOS.

THEY GET CAUGHT, THE APPEAL, THEY START OVER, IT'S A VICIOUS CYCLE.

THEN OCCASIONALLY SOMEONE GOES TO JAIL AND HAS TO MAKE RESTITUTION.

WHEN TRUMP PARDONS THEM IT MAKES A MOCKERY OF THE ADMINISTRATION AND JD VANCE'S PRETENCE TO CARE.

President   Donald   Trump   granted   clemency   to   multiple   people   convicted   in   large   Medicare   and   Medicaid   fraud   schemes,   including   high-profile   figures   such   as   Philip   Esformes,   Judith   Negron,   Lawrence   Duran,   and   Salomon   Melgen ,   whose   cases   alone   account   for   hundreds   of   millions   to   more   than   a   billion   dollars   in   alleged   fraud.  
Even the conservative Cato Institute knows better

 
 
 
JohnRussell
Professor Principal
1.1.14  JohnRussell  replied to  Split Personality @1.1.13    6 months ago

Many MAGAS like we see here believe that "welfare" such as Medicaid is mainly directed to blacks. One of the tenets of MAGA ideology is that the Democrats cater to blacks and browns because they are trying to bribe their vote. This belief explains why they will never complain about medicare and medicaid fraud from the trump class. 

 
 
 
Split Personality
Professor Participates
1.1.15  seeder  Split Personality  replied to  Vic Eldred @1.1.12    6 months ago
I'll take up the topic elsewhere where it is an open discussion.

Sorry, I think you misspelled "fact free".../s

 
 
 
Dismayed Patriot
Professor Quiet
1.1.16  Dismayed Patriot  replied to  Split Personality @1.1.15    6 months ago

He's not here to have an open discussion, he's here to defend Trump, right or wrong.

 
 
 
devangelical
Professor Principal
1.1.17  devangelical  replied to  Dismayed Patriot @1.1.16    6 months ago

... he's building steam for another embarrassing public exhibition of hypocrisy, like his hero.

 
 
 
Split Personality
Professor Participates
1.2  seeder  Split Personality  replied to  Split Personality @1    6 months ago

Which Trump Pardons Involved Convictions For Defrauding Medicare and Medicaid

President Donald Trump granted clemency to multiple individuals convicted in major Medicare and Medicaid fraud schemes, including high-profile health‑care executives such as Philip Esformes, Judith Negron, Lawrence Duran, John Estin Davis and Salomon Melgen, among others identified in news and government reviews  [1] [2] [3] [4] . Reporting and government analyses show these clemency actions covered schemes that prosecutors said siphoned hundreds of millions to more than a billion dollars from federal health programs, even as Trump and allied Republicans later framed their policy agenda around cutting “waste, fraud and abuse” in entitlements 

1. Who was clemency granted to and why it matters

Trump’s clemency slate included several people convicted in large Medicare and Medicaid fraud cases; official and press accounts single out Philip Esformes, who was convicted in what DOJ described as the largest health‑care fraud at the time and whose sentence was commuted, and Judith Negron, whose sentence was commuted after conviction in a $205 million fraud scheme tied to American Therapeutic Corp.   [1] [5] . Lawrence Duran, a co‑owner of American Therapeutic Corp. who pleaded guilty to defrauding Medicare of about $87 million, also received clemency, and prosecutors tied John Estin Davis and Salomon Melgen to separate schemes that billed tens of millions and, in Melgen’s case, at least $42 million to Medicare   [2] [3] [8] .

2. The scale of the frauds covered by clemency

Journalistic and state analyses emphasize scale: Esformes’ case involved roughly $ 1.3 billion in alleged Medicare and Medicaid losses according to prosecutors, Negron’s network was tied to about $205 million in fraudulent claims by some reports, and multiple other clemency recipients were connected to schemes that collectively represent well over a billion dollars in alleged improper Medicare and Medicaid billing   [1] [5] [6] . Independent reviews noted that at least 13 fraud convictions tied to Trump’s clemency actions involved more than $1.6 billion in Medicare and Medicaid claims, underscoring that several pardoned or commuted defendants were convicted in very large swindles   [6] [7] .

Office of the Pardon Attorney | Clemency Grants by President Donald J. Trump (2025-Present)

 
 
 
devangelical
Professor Principal
1.2.1  devangelical  replied to  Split Personality @1.2    6 months ago

I'd imagine the starting figure for the criminals negotiating those trump pardons was the amount of the restitution those pardons nullified, plus a $10 million pardon processing fee ...

 
 
 
devangelical
Professor Principal
1.3  devangelical  replied to  Split Personality @1    6 months ago

senator rick scott needs to volunteer to help out dr oz in the fraud investigation or trump should make him fraud czar. it's completely logical ...

 
 
 
Split Personality
Professor Participates
1.3.1  seeder  Split Personality  replied to  devangelical @1.3    6 months ago

Rick needs to take a long cruise somewhere.

 
 
 
devangelical
Professor Principal
1.3.2  devangelical  replied to  Split Personality @1.3.1    6 months ago

... in a concrete canoe.

 
 
 
MrFrost
Professor Guide
2  MrFrost    6 months ago

Partisan asshole. I hope the next Dem president denies all welfare payments to those broke ass red states.... Fuck'em.

 
 
 
Gsquared
Professor Expert
2.1  Gsquared  replied to  MrFrost @2    6 months ago

I understand the sentiment, but we are better than them.  Besides, there are a lot of people in the red states who might need help and are not magas or vote for Trump.  

 
 
 
Vic Eldred
Professor Principal
2.1.1  Vic Eldred  replied to  Gsquared @2.1    6 months ago

[deleted][✘]

 
 
 
Vic Eldred
Professor Principal
2.1.2  Vic Eldred  replied to  Vic Eldred @2.1.1    6 months ago

[✘]

 
 
 
devangelical
Professor Principal
2.1.3  devangelical  replied to  Gsquared @2.1    6 months ago

apply trump rules to maga fools ...

 
 
 
Trout Giggles
Professor Principal
2.2  Trout Giggles  replied to  MrFrost @2    6 months ago

I don't wish that on anyone. I live in a red state and we have a lot of sick people. Of course, lifestyles don't help matters much

But yeah.....he is a partisan asshole. I hate that guy

 
 
 
Split Personality
Professor Participates
3  seeder  Split Personality    6 months ago
eCgvJl1QRtQFRkpvWTUD2vjLsqQ.svg

State with the Most Medicare and Medicaid Fraud Prosecutions

Texas leads in reported recoveries from Medicare and Medicaid fraud, with $219.9 million recovered in 2022 — more than any other state in the dataset — followed closely by California and Florida   factually.co .

Why Texas Tops the List

State-level enforcement data from the U.S. Department of Health and Human Services and other watchdogs show that Texas has consistently produced the largest dollar recoveries from both Medicare and Medicaid fraud cases. This is due to a combination of:

  • Large-scale provider fraud schemes   in the state’s healthcare system.

  • High prosecutorial focus   on high-value cases.

  • Strong investigative capacity   from state Medicaid Fraud Control Units (MFCUs) and federal partnerships.

In 2022, Texas’s recoveries far exceeded those of other states, even though national improper-payment estimates for Medicaid in 2024 were about $31.1 billion — a figure that includes both fraud and administrative errors   factually.co .

Other High-Performing States

  • California   and   Florida   also ranked among the top in recoveries, though behind Texas   factually.co .

  • New York   leads in the number of flagged providers with suspicious billing patterns, but its per-capita risk rate is lower than some small states   www.openmedicaid.org .

  • Arizona   has a notable cluster of newly registered providers with suspicious billing, suggesting systemic enrollment screening gaps   www.openmedicaid.org .

Context on Fraud Measurement

It’s important to note that “most prosecuted” is not the same as “highest prevalence.” Recoveries reflect enforcement outcomes — settlements, civil judgments, and criminal convictions — and are influenced by:

  • The size and type of healthcare providers in the state.

  • The state’s investigative and prosecutorial resources.

  • The nature and scale of fraud schemes present.

For example, in FY 2025, U.S. Medicaid Fraud Control Units (MFCUs) across all states recovered almost $2 billion in combined criminal and civil cases, with Texas again among the top performers   Office of Inspector General .

Bottom line:   If you’re looking at enforcement outcomes, Texas prosecutes and recovers the most from Medicare and Medicaid fraud, followed by California and Florida. If you’re assessing fraud risk per capita, small states like Vermont and New York have higher rates despite smaller populations   factually.co +1 .

Health Care groups aren't new, they are just more prevalent in Texas and the people who run them are constantly testing the system to see where they can charge for two overlapping procedures or recommend barely warranted drugs for 90 days.  
One would naturally suspect that the largest populations will have the largest fraud and to an extant that is true.  Texas is almost always just ahead of California which is just ahead of 
Florida but smaller states actually have higher percentages of fraud.
 
 
 
Split Personality
Professor Participates
4  seeder  Split Personality    6 months ago

This is why California was targeted.  Newsome pointed out that this Administration is a sham when it comes to prosecuting fraud.

Trump pardons wipe nearly $2 billion in victim repayment and taxpayer recovery for Medicare and tax fraud, and more | Governor of California

Call a petty tyrant a vindictive prick and that's how he responds.  /S

 
 
 
Tacos!
Professor Guide
5  Tacos!    6 months ago

Aside from this likely being illegal…

Does he think there are no Republicans in California on Medicaid?

I wonder what the Pope would have to say to this “devout Catholic?”

 
 
 
Split Personality
Professor Participates
5.1  seeder  Split Personality  replied to  Tacos! @5    6 months ago

Maybe they can get Rubio to MAGAsplain it to the Pope, but him being from Chicago, prolly not, lol.

 
 
 
Split Personality
Professor Participates
5.2  seeder  Split Personality  replied to  Tacos! @5    6 months ago
Aside from this likely being illegal…

The MO of this entire Administration is to bull ahead without thought.

What was the old saying, better to ask forgiveness rather than permission?

These asshats don't even ask for forgiveness.  Look at the West Wing.

 
 
 
Trout Giggles
Professor Principal
5.3  Trout Giggles  replied to  Tacos! @5    6 months ago
I wonder what the Pope would have to say to this “devout Catholic?”

"I excommunicate you! May peace be with you."

 
 
 
devangelical
Professor Principal
5.3.1  devangelical  replied to  Trout Giggles @5.3    6 months ago

"do you like cats? have fun at the coliseum with your friends ... "

 
 
 
Split Personality
Professor Participates
6  seeder  Split Personality    6 months ago
eCgvJl1QRtQFRkpvWTUD2vjLsqQ.svg

California’s Medicare and Medicaid Fraud Units

California’s   Medi-Cal Fraud Control Unit (MFCU)   is the state’s Medicaid Fraud Control Unit, operating under the California Attorney General’s Office. It is responsible for investigating and prosecuting fraud in the state’s Medi-Cal program — the California version of Medicaid — and protecting vulnerable residents from abuse or neglect   oag.ca.gov . The MFCU also works alongside the federal   Medicare Fraud Control Units (MFUCUs) , which are part of the U.S. Department of Justice’s Health Care Fraud Unit.

Federal Oversight and Recent Controversy

The MFCU is federally funded through the   Medicaid Fraud Control Unit (MFCU) grant program   administered by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). In 2025, the OIG conducted a review of California’s MFCU and found:

  • 180 indictments, 221 convictions, 65 civil settlements/judgments, and $544 million in recoveries   from FY 2021–2023   Office of Inspector General .

  • Strong external partnerships and a new team-based investigation approach.

  • Challenges in staffing, inconsistent policies, limited fraud referrals from key sources, and data access issues.

  • Fiscal issues, including unsupported and unapproved costs, excess purchases, and inventory inaccuracies   Office of Inspector General +1 .

 
 
 
Split Personality
Professor Participates
7  seeder  Split Personality    6 months ago
Donald Trump is the personification of fraud. His hypocrisy knows no bounds: he is pardoning people convicted of fraud, corruption, and abusing the public trust — while turning around and using ‘fraud’ as a launching pad to go after political rivals. While his administration hands out get-out-of-jail-free cards to real fraudsters, the federal government is now trying to intimidate and target California with baseless allegations of ‘massive fraud.’ The rule of law isn’t a political weapon — it’s a promise, and we won’t let it be twisted to settle scores.

Governor Gavin Newsom

FRAUD ALERT: Newsom adds new list of Trump’s pardoned fraudster friends to Trump Criminals tracker | Governor of California
 
 
 
Sean Treacy
Professor Principal
8  Sean Treacy    6 months ago

Partisan democrats demanding the fraud spigot be left on,,,

no surprise.   Not a bit of anger at having billions in tax payer dollars wasted,  they are mad it was pointed out,   corruption is the all encompassing heart of the progressive movement.

 
 
 
Hal A. Lujah
Professor Participates
9  Hal A. Lujah    6 months ago

you have people who have been prescribed medications that they don’t even need

Foolish people neglecting to ask Dr. Vance if they really need their prescriptions.

It’s like this administration is literally trying to kill citizens by all means possible.

 
 
 
Dismayed Patriot
Professor Quiet
10  Dismayed Patriot    6 months ago

It's going to be so interesting to see how conservative react when there is a democrat in the white house that cuts off funding for all the conservative controlled loser dependent States until they can start paying their own way. Actually make those fat lard guzzling religious conservative bigots pay into the system instead of just take, take, take as they complain about those paying their way.

Most & Least Federally Dependent States in 2026

This really is the height of hypocritical hubris but not unexpected from such poorly educated morons who believe Trump math.

"We're gonna get 'em [drug prices] down 1,000%, 600%, 500%, 1,500%," - Donald Trump
 
 
 
Hal A. Lujah
Professor Participates
10.1  Hal A. Lujah  replied to  Dismayed Patriot @10    6 months ago

And he keeps quadrupling down on his new math, even getting his cabinet in on the absurdity.  I wonder what is going through their educated heads while they publicly try to justify the way Trump has redefined a concept as simple as percentage.

 
 
 
Split Personality
Professor Participates
11  seeder  Split Personality    6 months ago

Graham on Cassidy loss: ‘No room in GOP’ to ‘destroy’ Trump agenda

Lindseed was a decent person back when I lived in SC.  Of course, that's what voters told ourselves when we held our noses and still voted for Strom Thurman decade after decade.

As a moderate Republican and veteran, he simply had to be better than Strom, right?

For nearly two decades he was, but something happened to him when McCain lost and then passed.

Now Graham is just a good soldier, lemming and shill for Trump.  No moral value is too good to toss aside for the team.

 
 

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