Robert F. Kennedy Jr. halts more than $1 billion in Medicaid funds for California and Minnesota due to alleged fraud
The move affects more than $867 million in funding for California and more than $200 million in funding for Minnesota, as federal officials review claims deemed "high-risk" and alleged deficiencies in the documentation submitted by both states.
Robert Kennedy Jr. during an event in D.C ./ Alex Wroblewski
Secretary of Health and Human Services, Robert F. Kennedy Jr., announced Tuesday the suspension of more than $1 billion in federal Medicaid payments to California and Minnesota due to alleged irregularities and possible cases of fraud in both states.
"We are not sending Medicaid dollars out the door until we have confidence that they are being spent lawfully and appropriately," Kennedy stated during a press conference.
The measure affects more than $867 million allocated to California and more than $200 million earmarked for Minnesota, while federal officials review claims deemed "high-risk" and alleged deficiencies in the documentation submitted by both states.
Kennedy stated that if California Governor Gavin Newsom and Minnesota Governor Tim Walz wish to recover the funds for health programs targeting low-income individuals, "they need to provide documentation that these payments are legitimate."
The health secretary blamed the Biden administration and Democratic leaders in both states for the alleged misuse of public funds.
"Instead of protecting their money, they're opening the floodgates to theft," Kennedy said. "They dismantle basic program integrity and oversight."
He also criticized Medicaid oversight during the tenure of former Health Secretary Xavier Becerra. According to the Centers for Medicare & Medicaid Services (CMS), 14 high-risk areas were identified in Minnesota due to vulnerabilities or evidence of fraudulent activity.
In the case of California, federal officials noted that suspicions center on home care programs. CMS Administrator Mehmet Oz noted that state spending on these programs increased by 24% over the last two federal fiscal years, compared to 12% nationwide.
The governors' response
Federal authorities also pointed to millions of dollars in claims linked to services allegedly provided to beneficiaries after their deaths.
Meanwhile, Tim Walz's office responded to the decision in a statement sent to The New York Post, in which it stated that the “Trump Administration is cutting more money in healthcare than they’ve prosecuted for fraud.”
For his part, Newsom called the announcement a political decision.
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