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White House Defers $1.3 Billion to California and Halts New Hospice, Home‑Health Enrollments in Fraud Push

The actions mark a sharper use of federal funding levers to force tougher state anti‑fraud controls.

Overview

  • The administration, which announced the steps Wednesday, deferred $1.3 billion in California Medicaid reimbursements and started a six‑month nationwide pause on new Medicare enrollments for hospices and home‑health agencies.
  • Vice President J.D. Vance said federal officials will review every state’s Medicaid Fraud Control Unit and warned that Washington could cut off funding for units judged ineffective.
  • CMS highlighted new data tools, including work through its Fraud Defense Operations Center, while DOJ stood up a West Coast Health Care Fraud Strike Force covering Arizona, Nevada and Northern California.
  • The campaign builds on earlier moves that targeted Minnesota, where CMS froze hundreds of millions in Medicaid funds and the state sued, and it follows a separate freeze of some durable medical equipment supplier enrollments in February.
  • Public messaging is under scrutiny after local reporting in Maine found Vance misstated key facts about a high‑profile case, including calling a U.S. citizen a migrant and equating a company’s multi‑year billings with personal theft.