Trump Administration Halts $2.75 Billion in Medicaid Funds for California, Minnesota
Updated
Updated · The Guardian · Aug 3
Trump Administration Halts $2.75 Billion in Medicaid Funds for California, Minnesota
3 articles · Updated · The Guardian · Aug 3
Summary
$2.75 billion in Medicaid reimbursements has been withheld from California and Minnesota, including $2.2 billion from California and $550 million from Minnesota for services the states already paid for.
HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz tied the halt to suspected fraud and abuse in in-home care, but federal officials did not specify the allegedly improper claims.
State budgets now face added strain because home-care programs kept operating without the usual federal repayment, even as families say those services let disabled people avoid costlier institutional care.
Legal and policy experts called the move unusual because Washington suspended funds before presenting evidence, and they said the dispute is likely headed to court, with Minnesota's earlier case already paused until September.
Caregivers and disability advocates say the crackdown could force families into financial distress and reduce access to home-based support that Medicaid has long encouraged states to expand.
Could the push to eliminate healthcare fraud inadvertently cost taxpayers more by forcing disabled individuals into expensive institutional facilities?
How long can states independently fund home-based care before vulnerable residents face institutionalization due to frozen reimbursements?