Trump Admin Probes 6 Blue States After California Admits $500 Million in Improper Medicaid Billing for Illegals
Medicaid was created to be a safety net for America’s most vulnerable citizens—the elderly, disabled, and poor families who genuinely need help. It’s a program built on the premise that taxpayer dollars would support fellow Americans during their time of need. But somewhere along the way, certain states decided that “Americans” was too restrictive a term.
The Trump administration, through the Centers for Medicare and Medicaid Services, has launched spending probes into at least six Democratic-led states suspected of improperly using federal funds to provide comprehensive healthcare coverage to immigrants living in the U.S. without legal status. While federal law allows states to bill for emergency and pregnancy care for anyone, regardless of status, these states have been pushing far beyond those boundaries.
The investigation’s biggest revelation came from an unexpected source: California itself. The Golden State self-reported that it had improperly billed the federal government for at least $500 million in services provided to illegal immigrants. We’re not talking about emergency room visits here—California admitted to billing taxpayers for mental health services, addiction treatment, prescription drugs, and dental care for people who aren’t legally supposed to receive comprehensive Medicaid coverage.
California’s program alone costs $12.4 billion annually—let that sink in for a moment—to cover 1.6 million immigrants without legal status. Former state Medicaid director Jacey Cooper discovered the half-billion-dollar “error” and reported it to federal regulators, though it remains unclear whether that money has been repaid. The state claims it doesn’t even know how CMS calculated the overpayments or what time period they cover—a convenient fog of bureaucratic confusion when you’re caught with your hand in the cookie jar.
The pattern extends beyond California. Shocking, right? Colorado, Illinois, Minnesota, Oregon, and Washington are all under federal scrutiny, with several states already being forced to scale back their programs due to “ballooning costs”—bureaucrat-speak for “we can’t afford our own political generosity.” Illinois officials even begged CMS for more time to provide data, only to be denied and warned that federal funding could be withheld.
The Trump administration, through the Centers for Medicare and Medicaid Services, has launched spending probes into at least six Democratic-led states suspected of improperly using federal funds to provide comprehensive healthcare coverage to immigrants living in the U.S. without legal status. While federal law allows states to bill for emergency and pregnancy care for anyone, regardless of status, these states have been pushing far beyond those boundaries.
The investigation’s biggest revelation came from an unexpected source: California itself. The Golden State self-reported that it had improperly billed the federal government for at least $500 million in services provided to illegal immigrants. We’re not talking about emergency room visits here—California admitted to billing taxpayers for mental health services, addiction treatment, prescription drugs, and dental care for people who aren’t legally supposed to receive comprehensive Medicaid coverage.
California’s program alone costs $12.4 billion annually—let that sink in for a moment—to cover 1.6 million immigrants without legal status. Former state Medicaid director Jacey Cooper discovered the half-billion-dollar “error” and reported it to federal regulators, though it remains unclear whether that money has been repaid. The state claims it doesn’t even know how CMS calculated the overpayments or what time period they cover—a convenient fog of bureaucratic confusion when you’re caught with your hand in the cookie jar.
The pattern extends beyond California. Shocking, right? Colorado, Illinois, Minnesota, Oregon, and Washington are all under federal scrutiny, with several states already being forced to scale back their programs due to “ballooning costs”—bureaucrat-speak for “we can’t afford our own political generosity.” Illinois officials even begged CMS for more time to provide data, only to be denied and warned that federal funding could be withheld.
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