WASHINGTON — The Trump administration announced Tuesday that it is deferring more than $1 billion in federal Medicaid payments to Minnesota and California, citing suspected fraud and noncompliance within the states’ Medicaid programs.
According to the U.S. Department of Health and Human Services, the latest action includes approximately $867.5 million in deferred payments to California and $199 million to Minnesota. Health and Human Services Secretary Robert F. Kennedy Jr. said the administration is seeking to stop potentially improper payments before federal funds are distributed.
Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz said the agency identified billing patterns it considered concerning, including claims submitted after a beneficiary’s death and providers allegedly billing for multiple patients at the same time. However, federal officials did not publicly identify specific cases of fraud tied to either state.
Officials in California and Minnesota have pushed back against the administration’s actions. California has previously stated that federal officials have not provided evidence supporting allegations of fraud, while Minnesota officials say they are cooperating with CMS and have submitted documentation addressing the agency’s concerns.
Federal officials said the deferred funding could be released if the states provide documentation demonstrating the questioned payments were legitimate. The matter remains under review as both states continue working with federal investigators.
