A Fox News segment reported that the Trump administration deferred an additional $1.2 billion in Medicaid reimbursements to California, citing abnormal growth and billing patterns in the state’s personal care and hospice programs. The post linked the decision to fraud concerns previously highlighted by independent journalist Nick Shirley and claimed Gov. Gavin Newsom was ‘fuming.’ However, Newsom’s office did not immediately respond to the Los Angeles Times about the latest $1.2 billion deferral.
In the clip, the guest states that some operators “were themselves just running fraud schemes” and that officials are “moving full speed ahead to bring accountability to those who are treating patients and our most vulnerable as dollar bills.” The host notes that “the Trump administration now, from our understanding, is withholding $1.2 billion in Medicaid funding from California.”
The guest adds that officials are “seeing abnormalities in data across the country and in California” and that “hospice centers have a very high degree of billing far outside the realm of usual for a hospice practice.” He describes the administration’s approach as “making common sense solutions to make sure that the money does not go to the fraudsters at the front end.”
The post portrayed the deferral as targeting fraud previously highlighted by Nick Shirley, who has investigated suspected fraud involving California healthcare providers. The poster states that “GAVIN WAS WARNED” and that “California should get $0.”
News reports confirm that CMS Administrator Mehmet Oz announced the additional $1.2 billion deferral on October 20, citing 24% growth in California’s personal care services program over three years, twice the national average, and saying it was “impossible for us to understand how that could be.”
Reports note that Oz did not provide specific evidence of fraud beyond the growth figures and examples such as payments for routine family tasks.
Reactions to the Trump Administration’s $1.2 Billion California Medicaid Move
Some X users supported the action, with one writing, “Newsom’s FUMING? Good. Taxpayers have been fuming for YEARS!! Legitimate question: how many more billions in fraud is California sitting on?”
Another commented, “CMS deferred $1.2B more in California Medicaid payments Oct 20 after in-home care billing jumped 24% in 3 years. Show the receipts, get paid.”
Others referenced prior investigations, stating that “Nick Shirley helps to expose massive fraud in California” and criticizing state responses such as the law nicknamed the “Nick Shirley Law.”
A smaller number of replies pushed back, with one saying “America is tired of the lies and corruption from the trump administration.”
California officials have previously described similar withholdings as a “sick” and politically motivated attack on services meant to “keep seniors and people with disabilities OUT of nursing homes,” while noting that the program saves money, with in-home care costing roughly $30,000 per person annually compared with $137,000 for nursing home care.
It remains unclear how the latest funding deferral will ultimately affect services in California or how much of the disputed billing, if any, will ultimately be determined to involve fraud. The administration says the action is necessary to protect federal Medicaid dollars, while California officials have previously argued that withholding reimbursements threatens services for seniors and people with disabilities.
