Due to false Medicaid reimbursement claims for non-citizens made by Gov. Newsom’s administration, California owes the federal government $52.7 million.

According to a recent inspector general investigation, California used Medicaid reimbursement to offer care to “noncitizens with unsatisfactory immigration status” in violation of the law. States are not allowed to request such compensation for non-citizens unless there is an urgent medical need, according to federal law. This holds true for all non-citizens, even those who seek asylum or are refugees. 

California had been calculating the amount of federal reimbursements to claim between October 2018 and June 2019 using an antiquated calculation method, according to an audit by the US Department of Health and Human Services. The state must give funding for services rendered to noncitizens, which was not taken into account in this computation.

The inspector general’s office put forward the following suggestions: “(1) refund to the Federal Government the improperly claimed Federal reimbursement of $52.7 million for capitation payments made on behalf of noncitizens with UIS and (2) work with CMS to determine the amount of any improperly claimed Federal reimbursement for capitation payments made on behalf of noncitizens with UIS for an agreed-upon period not covered by our audit.” 

The National Desk was informed by the California Department of Health Services that the state intends to reimburse the federal government in full by June 30.

This information comes at a time when California is experiencing a severe budget shortfall of at least $45 billion, which has forced Governor Newsom to cut almost $200 million in funding for the courts and police enforcement.