CMS Withholds Additional $1.2B in Medicaid Funds From California

CMS Administrator Mehmet Oz announced on Oct. 20 that the federal government is deferring another $1.2 billion in Medicaid payments to California, citing rapid growth in the state's personal care services spending under its In-Home Supportive Services program. Oz said the program grew 24% over three years, twice the national average, and California was notified the same day. The deferral delays rather than cancels funds until the state documents that claims meet federal requirements. This follows a $1.3 billion deferral in May over broader fraud concerns and a September OIG report finding California failed to report and return $113.3 million in identified Medicaid overpayments, including a $47.8 million federal share.

LTSS · Finance