The Trump administration has suspended over $1 billion in federal Medicaid payments to California and Minnesota amid fraud allegations.
US FREEZES $1B+ IN MEDICAID FUNDS TO CALIFORNIA, MINNESOTA
Health Secretary Robert F. Kennedy Jr. said both states must submit documentation proving their claims are legitimate before funds are released. The Centers for Medicare and Medicaid Services withheld roughly $867.5 million from California and nearly $199 million from Minnesota after audits flagged questionable claims, including some tied to in-home care services.
According to New York Times, both states have denied any wrongdoing, calling the move politically motivated. Minnesota said it has already submitted supporting records for federal review, while California insisted it has safeguards in place to detect and prevent Medicaid fraud.
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