The Trump administration announced it is deferring more than $1 billion in Medicaid payments to California and Minnesota, citing suspected fraud and noncompliance. Health Secretary Robert F. Kennedy Jr. stated that the move is part of the administration’s strategy to prevent fraud before it occurs.

Medicaid Funding Deferrals

The deferrals, totaling $867.5 million for California and $199 million for Minnesota, are the latest in a series of punitive measures taken by the administration against mostly Democratic-led states. The Centers for Medicare and Medicaid Services (CMS) has not provided concrete examples of fraud in the two states, but has expressed concern over certain billing patterns, including providers billing for multiple patients at once or after a beneficiary’s death.

California officials have disputed the administration’s claims, arguing that the state’s home care program has grown due to a deliberate strategy to keep people out of more expensive nursing homes. Minnesota officials have also pushed back, stating that the federal government has not provided sufficient data or explanation for the deferral amount.

The Trump administration has intensified its efforts to combat fraud in Medicaid, with Vice President JD Vance launching a new anti-fraud task force in March. The task force aims to use data and technology to identify and investigate suspected wrongful use of federal dollars.

The deferrals have sparked criticism from Democratic governors in both states, with California’s Gavin Newsom accusing the administration of targeting his state for political reasons. Minnesota’s Tim Walz suggested that the deferrals are an attempt to pay for Trump’s tax cuts for wealthy Americans.

Original reporting: NBC4 Los Angeles — read the source article.