Vance turns up heat on states with federal cash threat over Medicaid fraud crackdown

Vice President JD Vance warned Wednesday that states could lose federal funding if they fail to aggressively pursue Medicaid fraud, escalating the Trump administration’s pressure campaign on governors and state Medicaid officials.”We are sending letters that will require them to show that they are effectively and aggressively prosecuting Medicaid fraud in their states. And if they do not, if they do not aggressively prosecute Medicaid fraud, we are going to turn off the money that goes to these anti-fraud units,” Vance said during a fraud news conference Wednesday.Vance said the federal government has provided states with “billions of dollars” for Medicaid Fraud Control Units and warned that funding could be cut off if states fail to comply with the crackdown. He pointed to states that have received billions of dollars in federal funding to protect against fraud but have yet to produce a conviction or indictment. The warning came as the administration announced it is deferring $1.3 billion in Medicaid reimbursements from California and Vance accused the state of failing to take fraud seriously. California officials have disputed the administration’s claims.HOUSE GOP LAUNCHES NEW TASK FORCE, PROBES ALLEGED $250B MEDICAID FRAUD IN OHIO”We’re announcing that the federal government is deferring $1.3 billion in Medicaid reimbursements from the state of California. And the simple reason is because the state of California has not taken fraud very seriously,” Vance added. Vance said Ohio, a red state, and Maryland, a blue state, have been good examples of states they have been working with that are…

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