Federal officials hold back $1.2 billion more in California Medicaid money
The Trump administration is holding back $1.2 billion more in Medicaid money from California. Officials say they suspect fraud in a home care program that grew fast. Mehmet Oz, who runs the federal program, did not show proof of fraud, and a California senator says the move will hurt older people.
The Trump administration is withholding another $1.2 billion in Medicaid reimbursements from California, citing concerns about possible fraud in a program that helps older adults and people with disabilities with daily tasks, the Los Angeles Times and the New York Post reported.
Dr. Mehmet Oz, who runs the Centers for Medicare and Medicaid Services, said state officials were notified Tuesday. He pointed to the rapid growth of California's personal care services program.
"California has been growing that program 24% in the last three years. That is twice the rate of every other state average in the country," Oz said at the White House. "Impossible for us to understand how that could be so we are taking major action in California."
Oz did not provide evidence of fraud, the Los Angeles Times reported. The New York Post also said his suspicions had not been backed up in his public remarks. Oz suggested the state pays people for help that families often give for free. "Many of you would carry groceries upstairs for your mom for free, but in California, they will pay you a lot of money for it," he said.
In May, the administration held back $1.3 billion in Medicaid payments over suspected fraud in California's hospice and in-home care programs. Together, that puts about $2.5 billion in dispute, according to the New York Post.
Democratic Senator Alex Padilla said the decision "will hurt older Californians, people with disabilities, and those recovering from illness or injury." Governor Gavin Newsom's office did not immediately respond to the Los Angeles Times. In May, it called the earlier move a "sick" and politically motivated attack on services that keep people out of nursing homes. The state says in-home care costs about $30,000 a year, compared with $137,000 for a nursing home.
On the same day, Trump and Vice President JD Vance announced a $25 million whistleblower program that pays people for tips about fraud.
What we know: Federal officials are deferring another $1.2 billion in California Medicaid reimbursements, with about $2.5 billion now in dispute.
What we don't: What evidence of fraud officials have, and whether California will challenge the move.
Where outlets agree The Los Angeles Times and the New York Post both report that Oz cited 24% growth in California's personal care program and did not present evidence of fraud.
Where they differ Oz says the program's growth can't be explained, while Newsom's office, which called a similar move in May a "sick" and politically motivated attack, had not yet responded to this one.