CMS to withhold $1.3B in Medicaid funds from California, puts state officials on notice about fraud

Fierce Healthcare – Wednesday, May 13, 2026
By Paige Minemyer

Just hours after the Trump administration announced action against fraud in the hospice and home health spaces, Vice President JD Vance put state regulators on notice that the feds are poised for further action.

At a White House event on Wednesday, Vance said that the Centers for Medicare & Medicaid Services would withhold $1.3 billion in Medicaid funding from the state of California, as officials have “not taken fraud very seriously.”

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