Vice President JD Vance announced Wednesday that the Trump administration is withholding $1.3 billion in Medicaid reimbursements from California and will send letters to all states demanding stronger action against fraud.
Speaking from the White House, Vance said the federal government is deferring the payments because California has not taken fraud seriously enough. Officials cited widespread abuse in the state's hospice system and suspended 800 providers from federal reimbursements, according to Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz. The administration is auditing state Medicaid Fraud Control Units and could cut anti-fraud funding to states that fail to show meaningful enforcement.
