Fed Medicaid freeze brings accountability to – Latest News
The Trump administration’s halt on Medicaid funds to California and Minnesota brings welcome deal with mismanagement by Govs. Gavin Newsom and Tim Walz.
After years of ballooning budgets, program expansions and suspiciously lax oversight, these blue-state leaders need to study that the free trip is over.
The governors can dismiss the feds’ choice as political theater. In actuality, it’s simply accountabilty.
Under Newsom, California’s spending has exploded from roughly $209 billion at first of his tenure in 2019 to over $350 billion within the 2026-27 cycle.
Governor Gavin Newsom at a press convention on housing affordability reforms in Oakland. Anadolu by way of Getty Images
Minnesota Gov. Tim Walz delivering the ultimate State of the State speech of his time period. Star Tribune by way of Getty Images
Much of that surge was funneled into Medi-Cal, the state’s Medicaid program, the place complete spending roughly doubled.
In-home supportive companies, a flagship part, ballooned dramatically, with growth charges that federal reviewers flagged. California noticed 24% spending growth in key durations versus a 12% national average. Outrageous.
These jumps got here amid claims of larger caseloads and wages, however in addition they got here regardless of persistent crimson flags from the state’s own audits.
California’s state auditor has stored the state Department of Health Care Services on its high-risk listing for years.
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Earlier experiences estimated these mismatches contributed to no less than $1.9 billion in questionable funds, with prior cycles pointing to figures nearing $4 billion over a number of years. Yikes.
Discrepancies allowed funds to movement for people whose eligibility was murky or outright invalid, together with advantages that lingered long after data prompt they need to have stopped.
The auditor repeatedly highlighted questions on Medi-Cal eligibility and inadequate follow-up.
This created huge financial publicity whereas raising the plain query: Where precisely had been all these taxpayer {dollars} going?Hospice care? That’s yet one more embarrassing chapter, significantly in Los Angeles County, the place suppliers multiplied like rabbits and overbilling patterns drew federal spending estimates into the billions.
Audits uncovered shared addresses, low affected person counts and questionable terminal diagnoses. And but enforcement appeared perpetually lax.
In typical eyeroll-inducing fashion, Newsom’s staff has leaned laborious on the “political stunt” line whereas touting coverage objectives like broader entry and neighborhood care.
That protection would possibly land higher if the state’s own auditor hadn’t spent years waving warnings.
Rapid growth with out verification created an setting ripe for waste. Worse, it left taxpayers to foot the invoice for what appears like mismanagement dressed up as compassion.
The governors now discover themselves scrambling to substantiate their claims or risk shedding federal matching funds.
Newsom and Walz should now produce proof — or own the results of years of unchecked spending that apparently has flushed away billions of taxpayer {dollars}.
At final, accountability.
Richie Greenberg is a political commentator primarily based in San Francisco.
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