CALIFORNIA'S MEDICAID SHELL GAME STEALS FROM TAXPAYERS.
California uses a loophole to inflate provider payments, draw down more federal funds, then diverts the money –- including $4 billion to pay for illegal aliens on Medicaid.pic.twitter.com/frZOWzPh0s
— Citizen Free Press (@CitizenFreePres) May 18, 2025
California has perfected a Medicaid money laundering scheme, siphoning billions in federal funds to finance free healthcare for illegals. The latest reports reveal that the state is redirecting $4 billion annually, exploiting loopholes in Medicaid financing to bypass federal restrictions.
The process is deceptively simple. California taxes Medicaid insurers, then recycles that tax revenue back into the system as higher payments to those same insurers. This maneuver allows the state to claim additional federal matching dollars, creating a surplus of funds that can be spent elsewhere. The result is a self-sustaining cycle, where federal money is laundered through the system without California contributing its own funds.
The impact is staggering. Over the past three years, California has secured more than $19 billion in federal Medicaid funds, using the money to expand coverage for illegals and eliminate asset tests for wealthy individuals seeking taxpayer-funded long-term care. The scheme circumvents federal restrictions, ensuring that Medicaid dollars flow freely to populations not legally eligible for benefits.
The federal government is finally taking notice. Centers for Medicare and Medicaid Services (CMS) Administrator Mehmet Oz has vowed to recover millions in misused taxpayer dollars, citing executive orders from President Donald Trump aimed at eliminating waste and abuse. The administration is targeting California’s Medicaid practices, preparing to claw back funds and enforce stricter oversight.
California’s budget crisis is deepening. The state recently announced a $3.44 billion Medicaid shortfall, forcing lawmakers to borrow money to cover expenses. Despite the deficit, Governor Gavin Newsom continues to expand Medi-Cal eligibility, ensuring that illegals receive full healthcare benefits at taxpayer expense.
The numbers don’t lie. California’s Medicaid spending has exploded, with federal contributions exceeding estimates by 25 percent under the Biden administration. The state’s aggressive expansion of benefits has placed an unsustainable burden on taxpayers, fueling calls for federal intervention to end the abuse.
Sources:
https://www.politico.com/news/2025/03/12/california-medicaid-shortfall-00227904