California Medicaid Fraud Cuts

California faces $1.2bn Medicaid funding cuts after fraud claims spike.

Oct 22, 2026

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California Medicaid Fraud Cuts

California faces $1.2bn Medicaid funding cuts after fraud claims spike.

In brief

California faces $1.2bn Medicaid funding cuts after fraud claims spike. California's Medicaid fraud costs the state $1.2bn in federal funds due to 24% surge in disability claims over three years. Originally reported by California Post.

Medicaid Funding Withheld

Front page of the California Post featuring a large headline about federal authorities withholding Medicaid funds from California, accompanied by photos of Gove

The Trump administration withheld $1.2 billion in Medicaid funding due to suspected fraud claims.

Previous Fraud Warning

President Donald Trump listens as Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz speaks in the Oval Office.

Dr. Oz previously withheld $1.3 billion in funding over hospice fraud concerns.

Claim Surge

The Devonshire Medical Plaza building in Northridge, California, housing the main office of an attending physician for dozens of hospices.

California saw a 24% increase in disability and age claims over three years.

Fraud Costs

Multiple hospice and home-health-care agencies are registered to operate from this Sun Valley building at 7200 Vineland Ave.

Fraud steals money directly and blocks federal funds from reaching states.

Democratic Oversight

California Governor Gavin Newsom speaks at the California Economic Summit.

California Democrats ignored fraud for years with handout mentality and weak oversight.

State Accountability

The auto parts store at 8777 San Fernando Rd. in Sun Valley, Calif.

California's one-party system lacks oversight for fraud networks.

Who's Really Cutting Funds

Dr. Mehmet Oz speaks at a campaign rally in Michigan.

California leaders are cutting Medicaid funding through fraud rather than federal policy changes.

What it means

California's Medicaid fraud costs the state $1.2bn in federal funds due to 24% surge in disability claims over three years.

Read the original on California Post

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