Trump administration holds back another $1.2 billion in California Medicaid funds

The Trump administration is deferring an additional $1.2 billion in Medicaid reimbursements to California over concerns about potential fraud in a state program that helps older adults and people with disabilities with everyday tasks, the Los Angeles Times reported. Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, said state officials were notified Tuesday.

“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. Oz did not provide any evidence of fraud but suggested the state was paying people too much taxpayer money to help with services that could be offered for free.

In May, the administration withheld $1.3 billion in federal Medicaid reimbursements to the state over concerns about “fraudsters” in its hospice and in-home care programs. Gov. Gavin Newsom’s office did not immediately respond to a request for comment, but previously called that action “sick” and politically motivated.