Cms increases oversight on medicaid funding misuse by states

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Cms increases oversight on medicaid funding misuse by states

CMS Deputy Chief Operating Officer John Czajkowski | cms.gov/about-cms/leadership/deputy-chief-operating-officer

The Centers for Medicare & Medicaid Services (CMS) has announced an increase in federal oversight to prevent states from using federal Medicaid funds to provide healthcare for individuals who are in the country illegally. Federal law generally allows Medicaid funding only for emergency medical services for noncitizens with unsatisfactory immigration status who would otherwise qualify for Medicaid. However, some states have been accused of overstepping these boundaries.

"Medicaid is not, and cannot be, a backdoor pathway to subsidize open borders," said CMS Administrator Dr. Mehmet Oz. "States have a duty to uphold the law and protect taxpayer funds. We are putting them on notice—CMS will not allow federal dollars to be diverted to cover those who are not lawfully eligible."

To address this issue, CMS is enhancing financial oversight to identify and stop improper spending. This includes focused evaluations of state Medicaid spending reports, in-depth reviews of state financial management systems, and assessments of existing eligibility rules and policies.

"Medicaid funds must serve American citizens in need and those legally entitled to benefits," said CMS Deputy Administrator and Director of the Center for Medicaid & CHIP Services Drew Snyder. "If states cannot or will not comply, CMS will step in."

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

This initiative aligns with President Trump's Executive Order on Ending Taxpayer Subsidization of Open Borders, emphasizing a commitment to restoring integrity to federal programs and securing the border.

The letter sent to states can be accessed at: https://www.cms.gov/files/document/open-borders-eo-notification-states.pdf

Information from this article can be found here.