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Medicaid Fraud Crackdown Widens: House Probes 10 States as Maine Files Detailed Rebuttal

Federal officials escalate with funding deferrals, enrollment moratoria, CRUSH to tighten Medicaid integrity.

Overview

  • On March 3, Republican leaders of the House Energy and Commerce Committee requested records from 10 states — California, Colorado, Massachusetts, Maine, Nebraska, New York, Oregon, Pennsylvania, Vermont and Washington — to examine Medicaid fraud, waste and abuse.
  • CMS Administrator Mehmet Oz separately pressed New York, sending a letter to Gov. Kathy Hochul and posting a video outlining concerns that included overall spending levels and the use of personal care assistants.
  • Minnesota remains a focal point after CMS deferred roughly $259–$260 million in federal Medicaid reimbursements in February, prompting the state to sue the federal government.
  • Maine submitted a nearly 50‑page response to CMS on March 6 after a denied extension request, as Gov. Janet Mills criticized the inquiry as politically motivated and warned the state could face federal funding withholding.
  • The federal push includes DOJ’s new Division for National Fraud Enforcement, CMS’s CRUSH initiative and a six‑month moratorium on new DMEPOS supplier enrollments, with CRUSH RFI comments due March 30.