CMS increases oversight to prevent misuse of federal Medicaid funds

Investing.com -- The Centers for Medicare & Medicaid Services (CMS) announced today that it is increasing federal oversight to prevent states from improperly using federal Medicaid funds to cover health care costs for individuals who are in the country illegally. Federal law generally limits the use of these funds to emergency medical services for noncitizens with unsatisfactory immigration status who would otherwise be eligible for Medicaid. However, some states have been extending these benefits beyond what is legally allowed, resulting in taxpayers funding benefits that are not permitted.

CMS Administrator Dr. Mehmet Oz stated that Medicaid cannot be used as a means to subsidize open borders. He emphasized that states have a responsibility to uphold the law and protect taxpayer funds. CMS is warning states that it will not tolerate the misuse of federal dollars to cover individuals who are not legally eligible.

To combat improper spending, CMS is increasing financial oversight across various areas. This includes focused evaluations of select state Medicaid spending reports, in-depth reviews of certain states’ financial management systems, and assessments of existing eligibility rules and policies to close loopholes and strengthen enforcement.

CMS Deputy Administrator and Director of the Center for Medicaid & CHIP Services, Drew Snyder, stressed that Medicaid funds should be used to serve American citizens in need and those legally entitled to benefits. He warned that if states fail to comply, CMS will intervene.

In addition, CMS is urging all states to immediately review and update their internal controls, eligibility systems, and cost allocation policies to ensure full compliance with federal law. Any improper spending on noncitizens will result in the recovery of the federal share.

This initiative aligns with President Trump’s Executive Order on Ending Taxpayer Subsidization of Open Borders, which aims to restore integrity to federal programs, secure the border, and prioritize Americans. CMS has pledged to continue to take decisive action to ensure Medicaid funds are used solely to protect people eligible for the program under federal law.

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