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Officials say $1.3 billion in Medicaid money to California will be deferred over suspicions of fraud

Officials said the move targets suspected fraud and includes a nationwide six-month freeze on new Medicare enrollments for hospice and home health providers.

  • Vice President Vance announced a $1.3 billion deferral in Medicaid reimbursements to California on Wednesday as part of the Trump administration's initiative to root out fraud in federal health programs.
  • Dr. Mehmet Oz, Centers for Medicare and Medicaid Services administrator, claimed California's records 'have generated major red flags,' citing $500 million in home health services and $200 million in questionable expenditures linked to coverage for undocumented immigrants.
  • The administration imposed a six-month moratorium on new Medicare enrollment for hospice and Home Health Agencies, aiming to 'aggressively identify, investigate, and remove' providers suspected of fraudulent activity during the freeze period.
  • California Gov. Gavin Newsom and California Attorney General Rob Bonta did not immediately respond to requests for comment; Newsom's office previously defended the program as 'keeping more people OUT of far more expensive nursing homes.'
  • Vance's anti-fraud task force warned all states to investigate Medicaid fraud aggressively or risk losing federal funding, intensifying pressure before the November elections as part of efforts to prosecute potential misuse of public money.
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VINnews broke the news on Wednesday, May 13, 2026.
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