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Oz Says HHS Is Deferring $1.2 Billion More From California Medicaid Funding
The Department of Health and Human Services (HHS) is deferring an additional $1.2 billion in Medicaid funding from California due to concerns about widespread fraud in its state healthcare programs, bringing the total withheld to over $3.3 billion. Dr. Mehmet Oz, Medicare and Medicaid Administrator, cited a 24 percent growth in California's personal care services program over three years, double the national average, as an impossible rate to understand. President Donald Trump, Vice President JD Vance, and independent journalist Nick Shirley were present for Oz's announcement. Shirley was credited for his work in exposing healthcare fraud, including in Minnesota, which garnered national attention. Trump signed an executive order to create an anti-fraud task force led by Vance and announced a $25 million Fraud Whistleblower Incentive Program (WHIP). WHIP will reward citizens 1 percent of discovered fraud for tips leading to successful convictions or significant federal enforcement actions. The Justice Department will oversee WHIP, accepting tips online at fraud.gov. This initiative aims to incentivize individuals to report misuse of tax dollars in their communities. HHS Secretary Robert F. Kennedy Jr. previously announced an $867 million withholding, and Vice President Vance announced a $1.3 billion withholding in May, both for similar reasons. California Governor Gavin Newsom has characterized these actions as politically motivated.