U.S. pauses $1B in Medicaid payments to California, Minnesota
HHS and CMS are holding roughly $867.5 million for California and $199 million for Minnesota pending documentation for high-risk Medicaid claims. State officials say the deferrals lack clear evidence and could strain Medicaid budgets.
US pauses $1 billion in Medicaid payments to California, Minnesota
Trump admin pauses over $1B in Medicaid to California, Minnesota
Trump administration halts $1 billion in Medicaid payments to California and Minnesota as part of fraud crackdown
Trump administration pauses $1 billion in Medicaid funding for California, Minnesota
HHS Defers More Than $1 Billion in Medicaid Payments to California, Minnesota Pending Review of High-Risk Claims in Crackdown on Fraud
The Trump administration has deferred more than $1 billion in federal Medicaid payments to California and Minnesota, escalating a fraud-focused review that state officials say is punitive and poorly explained. HHS said CMS is holding about $867.5 million for California and $199 million for Minnesota while the states provide additional documentation for claims it classifies as high risk.thehill
The move is a pause rather than a permanent cut, but it lands on top of earlier deferrals: $1.3 billion for California and hundreds of millions for Minnesota, by accounts from health-policy outlets and state-focused coverage.notus +1 HHS said California’s review centers partly on in-home care programs whose spending grew faster than national trends, while Minnesota’s involves 14 service areas and claims linked to providers flagged in program-integrity reviews.thehill
Federal officials framed the step as a shift toward stopping improper payments before they go out. HHS Secretary Robert F. Kennedy Jr. said states must show the services were legitimate, and CMS Administrator Mehmet Oz said the agency would no longer “chase down” misused money after payment.thehill The Guardian reported Kennedy also said officials used AI and advanced analytics to identify suspicious activity.dailynews
California and Minnesota officials pushed back, arguing CMS has not shown enough evidence to justify the amounts being withheld. Minnesota Medicaid director John Connolly said CMS had not provided data or an explanation for how the deferral was calculated, while California officials have argued that growth in home-based care reflects a deliberate effort to keep older and disabled residents out of costlier institutions.notus
The dispute is likely to sharpen a broader fight over federal Medicaid oversight. The Hill reported that officials described red flags including claims tied to deceased people and unusually large batches of patients, while critics said the administration’s public deferrals have so far fallen on Democratic-led states.cbsnews For Medicaid programs that rely on federal matching funds, even a temporary hold can force states to bridge cash gaps while they challenge the review or assemble the documentation CMS is demanding.notus
12 sources
reuters
US pauses $1 billion in Medicaid payments to California, Minnesota
The Trump administration is pausing $1 billion in Medicaid payments to California and Minnesota over suspected fraud and noncompliance.
fiercehealthcare
Trump admin pauses over $1B in Medicaid to California, Minnesota
The Trump administration is pausing more than $1 billion in Medicaid payments to California and Minnesota due to suspected fraud.
cbsnews
Trump administration halts $1 billion in Medicaid payments to California and Minnesota as part of fraud crackdown
HHS Secretary Robert F. Kennedy Jr. said his agency is pausing $867.5 million in Medicaid payments to California and additional funds to Minnesota.
thehill
Trump administration pauses $1 billion in Medicaid funding for California, Minnesota
The Trump administration paused over $1 billion in Medicaid payments to California and Minnesota amid alleged fraud concerns.
hhs
HHS Defers More Than $1 Billion in Medicaid Payments to California, Minnesota Pending Review of High-Risk Claims in Crackdown on Fraud
HHS and CMS deferred more than $1 billion in federal Medicaid payments to California and Minnesota pending documentation for high-risk claims.
axios
Trump admin freezes more than $1 billion in Medicaid funds
The administration is halting more than $1 billion in federal Medicaid payments to California and Minnesota until states take more steps.
wsj
Trump Administration Freezes $1 Billion in Medicaid Funding for California and Minnesota
Officials intensified efforts to fight what they say is widespread fraud in government spending programs.
notus
Trump Administration Pauses $1 Billion in Medicaid Payments to California and Minnesota
The administration is deferring a second hefty round of payments to states it says did not take fraud seriously enough.
healthcaredive
Trump administration pauses $1B in Medicaid payments to California, Minnesota
HHS halted more Medicaid funding to the states, citing concerns about fraud, while critics criticized the strategy.
dailynews
Trump administration pausing $1 billion in Medicaid payments to California, Minnesota after fraud audit
The administration paused $1 billion in Medicaid funds from two states after a fraud audit.
theguardian
RFK Jr pauses $1bn Medicaid funding to California and Minnesota
The Trump administration paused more than $1 billion in Medicaid funding to California and Minnesota, citing suspected fraud and noncompliance.
mprnews
Fraud cited as Trump administration puts another freeze on Medicaid funds to Minnesota
The deferral of aid to Minnesota is part of a larger action also including approximately $867 million kept from California.