GRAY, LOFGREN PRESS TRUMP ADMINISTRATION TO RELEASE $867 MILLION IN WITHHELD MEDICAID FUNDING
Last week, Congressman Adam Gray (CA-13) and California Democratic Congressional Delegation Chair Zoe Lofgren (CA-18) led the California Democratic Congressional Delegation along with Senators Alex Padilla and Adam Schiff, in sending a letter to U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. and Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz urging the agencies to work with California to resolve outstanding concerns and release $867.5 million in deferred federal Medicaid payments.
The effort comes in response to CMS’s decision in July to defer $867.5 million in federal Medicaid payments to California while the state provides additional documentation related to certain Medicaid claims.
In their letter, the Delegation raises concerns that the payment deferral could put additional strain on the state and threaten access to care for vulnerable Californians. For Central Valley families, doctors, hospitals, and care providers, reliable Medicaid funding is essential to making sure patients can get the care they need.
“We should always take fraud, waste, and abuse seriously and make sure taxpayer dollars are being used responsibly. But withholding hundreds of millions of dollars in Medicaid payments without identifying specific fraud puts patients and providers in the middle of a dispute they didn't create,” wrote the Delegation.
“California is working with CMS to provide the information being requested. The federal government should work with the state to resolve these concerns quickly and make sure patients continue to have access to the care they need,” the Delegation continued.
The letter also pushes back on the suggestion that increased spending on California’s in-home care programs is, on its own, evidence of fraud. The Delegation notes that the growth of these programs has been intentional because in-home care can be less costly than institutional care, while California has also implemented additional safeguards to address areas of concern.
"We're grateful to California's congressional delegation for pushing back on this unprecedented deferral. We share their concern that withholding these funds — without identified fraud — puts access to care at risk for millions of Californians. Community health centers care for every patient and strengthen every community, delivering care linked to up to 22% lower annual Medicaid costs per patient and $9.6 billion in savings in 2023. That's the kind of results CMS should be supporting, not jeopardizing,” said Dr. Melissa Marshall, CMO of the California Primary Care Association.
“California physicians support pragmatic solutions that strengthen oversight, protect taxpayer dollars and maintain a stable health care system. But CMS's decision to defer another $867.5 million in Medicaid payments, on top of the previous $1.3 billion deferral, is not responsible oversight – it puts patients at risk. Medicaid policy should be driven by verified facts, not rhetoric, and patients must remain the priority,” said René Bravo, M.D., President of the
California Medical Association.
The letter is signed by the entire California Democratic Congressional Delegation.