Story perspectives

HHS Defers $1.07 B to California, Minnesota Over Fraud Concerns

7/22/2026

Summary

Story summary

HHS Secretary Robert F. Kennedy Jr. deferred $867.5 million to California and $199 million to Minnesota over fraud concerns.
CMS Administrator Dr. Mehmet Oz said in-home health services, whose spending rose 24 %, double national rate, and quarter target care for those with “unsatisfactory immigration status.”
Minnesota fraud involves 14 programs, prompting California Attorney General Rob Bonta to review the deferrals and Governor Gavin Newsom to call the move a stunt.

History

Historical Context

Federal anti-fraud efforts began in 1997 when HHS allocated $100 million to the FBI and its Office of Investigations, later formalizing the Medicare Fraud Strike Force in 2007. Over the next decade the program prompted states such as California and Minnesota to tighten oversight. Today HHS Secretary Robert F. Kennedy Jr. is deferring $867.5 million to California and $199 million to Minnesota, continuing the federal-state partnership.

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Story summary

HHS Secretary Robert F. Kennedy Jr. deferred $867.5 million to California and $199 million to Minnesota over fraud concerns.
CMS Administrator Dr. Mehmet Oz said in-home health services, whose spending rose 24 %, double national rate, and quarter target care for those with “unsatisfactory immigration status.”
Minnesota fraud involves 14 programs, prompting California Attorney General Rob Bonta to review the deferrals and Governor Gavin Newsom to call the move a stunt.

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