The Trump administration is pausing more than $1 billion in Medicaid payments to California and Minnesota, citing suspected fraud and noncompliance, U.S. Health Secretary Robert F. Kennedy Jr. announced Tuesday.
Kennedy said the states must provide documentation proving the payments are legitimate before funding is released. The administration alleges questionable spending in California is tied largely to in-home services, while concerns in Minnesota stem from 14 high-risk areas previously identified by the state’s legislative auditor.
CMS Administrator Dr. Mehmet Oz joined Kennedy in announcing the move, which is part of the White House’s broader effort to crack down on fraud in federal healthcare programs.
Officials did not provide evidence supporting the allegations but also announced expanded authority for CMS and the HHS Office of Inspector General to permanently bar individuals found committing fraud from participating in federal healthcare programs.
