Fraud Will Cost Ya: California Feels Bite Of New Federal Crackdown On Medicaid Corruption
The Trump admin is hitting California right in the incentives
Incentives matter. Crooked people love nothing better than a low-risk high-reward scheme that can line their pockets with the least amount of effort possible. Change the incentives, and you change the game completely.
California is getting a $1.3 Billion wake-up call
We’ve already seen this principle put into action with the border. Instead of being welcomed in with open arms and a gift basket of taxpayer-funded goodies, they’re sent packing. And just like that, the caravans suddenly stopped coming. Partly because the incentives for the would-be ‘refugees’ had changed, and partly because the activists groups, and even hostile countries that had been orchestrating these caravans could no longer use this method to advance their financial or political objectives.
DOGE helped set the stage for the Fraud Squad that would look for other areas where the taps could be turned off, to put an end to weaponizing taxpayer dollars against the actual interests of American citizens.
Remember when Newsom squealed like a stuck pig when Dr Oz and then Nick Shirley threw a spotlight on long-standing abuses of the Hospice system in Los Angeles? It was ‘racist’ to make such allegations. How DARE Oz suggest that foreign-based crime syndicates (including Russians) were robbing taxpayers blind with no-show ‘health care’ agencies. Newsome tried to smear Shirley as being motivated in his investigations by a creepy inappropriate interest in children.
Thing is, he really found fraud. So did Oz. So did the news networks.
Heaps of it. How bad was the fraud? One brief exchange between Veep Vance and Dr Oz can help visualize the magnitude.
UNBELIEVABLE. Vice President Vance just did a double take after hearing this wild stat dropped by Dr. Oz:
"You're saying that we kicked off 800 fraudulent healthcare providers off of the Medicare system and not a single one of them called the government and said, 'hey, you made… pic.twitter.com/EaJTz1lNoA
— Andrew Kolvet (@AndrewKolvet) May 13, 2026
Of 800 fraudulent ‘health care providers’ thrown off of the system, ‘at least 780’ of them didn’t even call in to protest and claim they were legit.
The tap has been turned off for those 800 bogus Medicare ‘providers’. But that’s not all.
California has nominated itself as the example of FAFO. A state can cooperate in the process of identifying, rooting out, and prosecuting crime — or they can forfeit the Federal dollars that corruption relies on.
When states like California refuse to work with the federal government on saving American taxpayer dollars, @CMSGov and the @WHFraudTF will hold those states accountable.
Today, CMS notified the California Dept. of Health Care Services that we are deferring $1.3 billion in… https://t.co/6vfMo1iqfa pic.twitter.com/E7H6Necg42
— DrOzCMS (@DrOzCMS) May 13, 2026
Suddenly, it’s no longer ‘the government’ who’s carrying the cost of these expenses, it’s the budget of the state that has been turning a blind eye to the fraud in the first place.
This is not a new thing. Nor can the Dems claim ignorance.
Remember how they fought like cornered badgers when we dared to suggest that unused COVID money should be clawed back since the pandemic has come to an end? Their slush funds were being threatened, and those slush funds are very important to the perpetuation and maintenance of their power.
It’s not just Medicaid dollars, either.
The Trump Administration has zero tolerance for fraud.
In partnership with @WHFraudTF, @usedgov has prevented more than $60 million from falling into the pockets of fraudsters. https://t.co/RppGF9MxLC
— Secretary Linda McMahon (@EDSecMcMahon) May 13, 2026
Delivering on a promise to ‘drain the swamp’ takes more than signing a bill or flicking a switch. Insiders have buried themselves like ticks in the body politic, and it will take a long and deliberate process of tracking them down and starving them out. But it CAN be done, and this is a good step in the right direction.
Way back in the 2012 Veep debate, Paul Ryan was BLASTED for proposing solutions that would extend the life of the social safety net beyond the dates we’ve been told their insolvency was imminent. He was accused of trying to throw grandma and her wheelchair off a cliff.
In reality, Dems refusing to prosecute highwaymen and pirates from bleeding the taxpayer dry are the ones posing the REAL threat to Medicare and Medicaid insolvency. But they care more about power and keeping the gravy train going than they do about this little thing we used to call ‘public service’.
It’s a term that used to mean acting in the best interests of the voters who elected you.
That’s been replaced too often by servile obedience to the activists and donors who own you.