Vice President JD Vance has announced a series of measures to combat fraud in federal health programs, including a significant deferral of $1.3 billion in Medicaid funding to California.

Vance, acting as the fraud czar, highlighted California’s perceived lax approach to fraud as the reason behind the move. The administration is freezing some new Medicare enrollments for six months and urging all 50 states to investigate Medicaid fraud or face potential funding cuts.

The Vice President said Medicaid fraud in California is harming both taxpayers and patients, alleging that fraudsters have pushed unnecessary prescriptions and medications onto people who did not need them.

 "And if we continue to find problems, we can turn off other resources within their state Medicaid programs as well,” warned Vance.

CMS Flags California Spending

Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services (CMS), stated that the administration requires California to clarify $630 million in billing, $500 million in home health services, and $200 million in “questionable expenditures” linked to coverage for undocumented immigrants.

Dr. Oz also announced that CMS will pause new Medicare enrollments for hospices and home health agencies for six months as part of anti-fraud efforts. During the ...