Vice President JD Vance announced on Wednesday additional measures under the Trump administration’s effort to combat fraud in federal healthcare programs, including the deferral of $1.3 billion in Medicaid reimbursements to California.
“These fraudulent health care providers are getting rich by giving people medications they don’t even need,” Vance said during an event at the White House, adding that taxpayers and program beneficiaries are victimized by such fraud.
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Officials said the Republican administration is also implementing a six-month pause on certain new Medicare enrollments while warning states to investigate potential Medicaid fraud or face the risk of losing federal funding.
The measures are part of Vice President JD Vance’s anti-fraud task force, which has intensified its public outreach ahead of the November elections. Established by President Donald Trump, the initiative is aimed at preventing the misuse of taxpayer funds in federal programs.
Vance, who is considered a possible contender for the 2028 presidential race, has used the prominent role assigned by Trump to highlight efforts to recover taxpayer money for Americans dealing with rising living costs. He has promoted the task force’s initiatives during campaign events for Republican candidates and is expected to emphasize the effort again on Thursday in Maine, where closely watched primary elections are set for June 9.
The measures come at a time when Americans across the country are expressing concerns over rising healthcare costs and increasing barriers to access, some of which critics say stem from federal government policies. For instance, new Medicaid work requirements are expected to place additional pressure on hospitals nationwide and could lead to millions of beneficiaries losing their health insurance coverage.
The administration argues that its intensified anti-fraud initiatives are necessary to curb misuse within Medicaid and Medicare programs while safeguarding funding and resources for individuals who rely on these services the most.
Deferring $1.3 billion in California payments
Dr. Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, said the administration was making the “largest deferral we’ve ever made” in Medicaid funds and that it was justified.
“We’d like the state to at least come to the table and explain to us how these outlier payments have been generated,” he said.
California’s Medicaid program is projected to cost approximately $222 billion for the fiscal year beginning July 1, including both state and federal contributions.
Representatives for Democratic Governor Gavin Newsom’s office and California’s Department of Finance did not immediately respond to requests for comment regarding the announcement.
