{"id":1795,"date":"2026-05-13T21:03:09","date_gmt":"2026-05-13T21:03:09","guid":{"rendered":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/federal-government-to-defer-1-3-billion-to-california-medicaid-says-vp-vance-2\/"},"modified":"2026-05-13T21:03:09","modified_gmt":"2026-05-13T21:03:09","slug":"federal-government-to-defer-1-3-billion-to-california-medicaid-says-vp-vance-2","status":"publish","type":"post","link":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/federal-government-to-defer-1-3-billion-to-california-medicaid-says-vp-vance-2\/","title":{"rendered":"Federal government to defer $1.3 billion to California Medicaid says VP Vance"},"content":{"rendered":"<article><!-- --><!-- --><!-- WPS-5038 -- removed the script from WPS and added the placeholder for trinity player --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- CONTENT --><!--[--><!--[--><\/p>\n<p>U.S. Vice President JD Vance said Wednesday morning the federal government will withhold $1.3 billion in Medicaid payments to California.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/sacramento-officer-bitten-by-west-sacramento-police-k-9-during-pursuit-of-suspect\/\">Sacramento officer bitten by West Sacramento police K-9 during pursuit of suspect<\/a><\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The announcement came at a news conference about the government\u2019s ongoing efforts to combat what it says is widespread fraud in social services. In March, President Donald Trump signed an executive order called the \u201cEstablishing the Task Force to Eliminate Fraud.\u201d He put Vance in charge and gave him the nickname \u201cFraud Czar.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>On Wednesday, Vance said the government would defer the Medicaid money because \u201cwe want California to get serious about this fraud.\u201d Medicaid, known as Medi-Cal in California, is a joint federal-state healthcare program that helps lower income people afford health coverage.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Vance alleged that doctors in the state are prescribing medications for people who don\u2019t need it because fraudsters have \u201cfalse prescriptions and false administration of medications.\u201d He also threatened to suspend funding to all states if they don\u2019t aggressively prosecute fraud.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cWe\u2019re announcing that the federal government is deferring $1.3 billion in Medicaid reimbursements from the state of California,\u201d Vance said near the start of the news conference. \u201cThe simple reason is because the state of California has not taken fraud very seriously.\u201d<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Vance did not provide specifics on the deferment, including a timeline or how many people it would affect. The Centers for Medicare and Medicaid Services announced Wednesday that it would temporarily halt new hospice and home health provider enrollments in Medicare.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Vance highlighted other states, including Hawaii and New York, which he said are also not tackling fraud aggressively. The Trump administration has repeatedly claimed that widespread fraud has mostly occurred in Democratic-led states. State officials have described the move as retribution and said such cuts will harm vulnerable populations.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cStates like California, states like Hawaii, states like New York, have completely not taken the fraud issue seriously in the Medicaid program,\u201d Vance said. \u201cAnd so for those states that refuse to get serious about fraud, we are going to turn off that anti-fraud money. And if we continue to find problems, we can turn off other resources within their state Medicaid programs as well.\u201d<\/p>\n<p><!--]--><!--[--><\/p>\n<p>In response to Vance\u2019s claim, Gov. Gavin Newsom\u2019s office directed The Sacramento Bee to three posts on X released by Newsom within the last few hours. The posts pushed back against the statements of Vance and Dr. Mehmet Oz, who also spoke at the news conference.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cWe hate fraud,\u201d said one post. \u201cBut that\u2019s NOT what this is. Vance and Oz are attacking programs that keep seniors and people with disabilities OUT of nursing homes. Pretty sick.\u201d<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/federal-government-to-defer-1-3-billion-to-california-medicaid-says-vp-vance\/\">Federal government to defer $1.3 billion to California Medicaid says VP Vance<\/a><\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<div>\n<blockquote>\n<p>Here are the facts they refuse to accept:<\/p>\n<p>FACT: California\u2019s prioritization of in-home care options is exactly the kind of home-based care federal leaders in both parties have encouraged for decades.<\/p>\n<p>FACT: MAGA hates in-home-support programs \u2014 which help people stay out of\u2026<\/p>\n<p>\u2014 Governor Newsom Press Office (@GovPressOffice) May 13, 2026<\/p><\/blockquote><\/div>\n<p><!--]--><!--[--><\/p>\n<p>Both national and state-level Republican politicians have sought to make fraud, particularly in the hospice industry, a political issue for Newsom and California Democrats. Some of those accusations have stemmed from the conservative influencer Nick Shirley, who drew viral fame for accusing daycare centers in immigrant neighborhoods of Minneapolis of fraud \u2014 allegations that in some cases were disproven by local news organizations.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Shirley subsequently visited Los Angeles and posted videos of hospice businesses and offices he said appeared fraudulent. Oz, the head of the federal Centers for Medicare and Medicaid Services, visited Los Angeles in January and posted what he described as his own video investigation into Medicaid fraud in the city.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Last month, Shirley visited Sacramento and accused lawmakers of trying to block his investigations into Medicaid fraud in the state.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>But state officials have labeled fraud a concern in California\u2019s hospice industry for years.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>In 2021, after the Los Angeles Times documented growing hospice fraud, Newsom and the Legislature put a freeze on new hospice licenses in place. The next year, the California State Auditor published a report noting weak safeguards and a rapid increase in the number of hospices registering in Los Angeles County.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The California Department of Public Health has been slow in implementing guidelines from the auditor\u2019s report, according to critics, leading lawmakers this year to extend the moratorium into 2027.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Both state and federal law enforcement agencies have announced arrests of what they alleged were large, organized attempts at hospice fraud this year. California Attorney General Rob Bonta announced in April his department had charged 21 people over $267 million suspected hospice fraud.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cThis isn\u2019t a political game for us,\u201d Bonta said in a news release announcing the arrests.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/golden-1-credit-union-to-invest-1-million-in-sacramento-state-over-next-4-years-2\/\">Golden 1 Credit Union to invest $1 million in Sacramento State over next 4 years<\/a><\/p>\n<p><!-- --><!--]--><!--]--><!-- --><!-- --><!-- --><!-- --><\/article>\n","protected":false},"excerpt":{"rendered":"<p>Vice President JD Vance says the federal government will defer $1.3 billion in Medicaid reimbursements from California amid allegations of widespread fraud.<\/p>\n","protected":false},"author":1,"featured_media":1791,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capitol-alert"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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