CMS Suspends Over $1 Billion for California, Minnesota Medicaid Claims as Fraud Probe Widens
Updated
Updated · POLITICO · Jul 21
CMS Suspends Over $1 Billion for California, Minnesota Medicaid Claims as Fraud Probe Widens
3 articles · Updated · POLITICO · Jul 21
Summary
$1 billion-plus in Medicaid funding to California and Minnesota was suspended by CMS, with the latest action zeroing in on California in-home care claims and frozen money staying on hold pending documentation.
California accounts for more than $867 million of the pause, while Minnesota faces about $200 million; CMS said California's in-home care spending growth has outpaced national trends and cited suspected fraud and noncompliance.
Tim Walz said the administration was punishing children, seniors and people with disabilities rather than fraudsters, while Gavin Newsom's office called the move a recycled political stunt and said home care saves taxpayers money.
The suspension is California's second deferral and follows an earlier roughly $243 million Minnesota pause, extending a broader Trump administration Medicaid fraud crackdown ahead of the 2026 midterms.