Medicaid fund threats

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Medicaid fund threats
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Hundreds of millions of dollars — and possibly billions — for Minnesota's Medicaid program are in limbo as part of the Trump administration's crackdown on fraud.Health care policy experts say the threats to Medicaid funding are unprecedented — going far beyond the typical steps to address fraud and at a scale that could disrupt services for patients.

While Minnesota has been under unique federal pressure, the Centers for Medicare and Medicaid Services has also sent letters to California, New York and Maine, raising concerns about potential fraud in each of the state's Medicaid programs. A Medicaid policy expert, who also served as a senior adviser to CMS during the Obama administration, said this step could be an early warning signal for deferring or withholding federal Medicaid funding in those states.When Sarah Lindbo's 14-year-old daughter Greta is thriving, she is playful, engaged and not in pain. Greta, who has cerebral palsy, requires a range of supports to get to that point. That includes doctors, medical equipment, prescriptions, a paraprofessional at school and a care assistant at home. Many of these services depend on Medicaid. " Medicaid makes a huge impact in our day-to-day life," Lindbo said."It is the foundation of what gives Greta her experience at school and in our community and our family." But lately, Lindbo has been nervous. She and her family live in Minnesota where hundreds of millions of dollars — and possibly billions — for the state's Medicaid program are in limbo as part of the Trump administration's crackdown on fraud. It came after federal prosecutors last yearDr. Mehmet Oz, who oversees the Centers for Medicare and Medicaid Services, has argued that widespread fraud has persisted for too long, hurting both taxpayers and those who rely most on the program. "This is not a problem with the people of Minnesota. It's a problem with the leadership of Minnesota and other states who do not take Medicaid preservation seriously," he said at a But health care policy experts say the threats to Medicaid funding are unprecedented — going far beyond the typical steps to address fraud and at a scale that could disrupt services for patients. "If this becomes the framework for addressing fraud, it's really destabilizing," said Allie Gardner, a health policy researcher at the Center on Budget and Policy Priorities, a progressive think tank." It risks the coverage and care for those that depend on the program." CMS declined to comment, citing pending litigation. Earlier this month, Minnesota filed a federal lawsuit over a portion of the frozen Medicaid funds. In aannouncing the suit, Minnesota Attorney General Keith Ellison asserted that the state has taken a concerted effort against fraud and the federal government's"cut first" approach risks care for Minnesotans. "The Trump Administration's M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all," he said.Administrator for the Centers for Medicare & Medicaid Services Dr. Mehmet Oz speaks during a news conference on efforts to combat fraud, at the White House on Feb. 25, 2026.The federal government partners with states to fund Medicaid. But after widespread fraud allegations surfaced in Minnesota, CMS announced it would halt federal funds for the state's program in two ways — retroactively and going forward.that the state spent on Medicaid last summer, citing concerns about potential fraud and coverage for patients without legal status, who are not eligible for Medicaid. The federal agency asked the state to prove that funds were spent lawfully across 14 categories of providers which Minnesota had previously identifiedDeferrals are a standard oversight tool for CMS but they are typically narrow in scope — like a review of a specific set of claims, according to Gardner. When deferrals are too broad or vague, it can be more difficult and time-consuming for the state to gather the proper evidence and respond to the issues, she said. "The state kind of has to shoot in the dark in responding to CMS on what documentation they need to provide," Gardner said."What is the scope of information needed? Do they need documentation to justify every single claim?" The second move is known as withholding. Here, the federal government is saying it will hold off payments for future care. That decision came after CMS asked Minnesota in December for a plan on how it will prevent future fraud. The state later submitted aAccording to Gardner, this kind of move is rare, especially with an amount this large. Using both deferral and withholding simultaneously puts Minnesota at risk of a massive and sudden financial hit. " CMS' use of both of these processes to go after the same services at the same time — that's really concerning," she said."Especially given the significant financial consequences to the state and providers as well as, to the care and coverage of Medicaid enrollees." Before CMS can start withholding future funds, the state has an opportunity for a hearing. If CMS decides not to release the funds in deferral, the state also has a chance to appeal. Minnesota's lawsuit pertains to a bulk of the money stuck in deferral.Attorneys representing CMS have argued the $259.5 million in deferral involves services that were already paid for by the state, which only represent about 7% of quarterly federal funds owed to Minnesota. But Andy Schneider, a Medicaid policy expert with the Georgetown Center for Children and Families, said the state likely planned its budget with the expectation of receiving those reimbursement funds. " The federal government has just told the state, you have $259 million less to work with for the services that are happening now," he said."That's a lot in a short period of time." The potential loss of $2 billion in future funding would be even more challenging for the state to manage, according to Schneider. It could slow payments to providers and delay the enrollment of new patients. It could also force the state to cut reimbursement rates and limit the number of services it covers, he added. While Minnesota has been under unique federal pressure, CMS has also sent letters to California, New York and Maine, raising concerns about potential fraud in each of the state's Medicaid programs. Schneider, who also served as a senior adviser to CMS during the Obama administration, said this step could be an early warning signal for deferring or withholding federal Medicaid funding in those states.over Medicaid fraud in 10 states: California, Colorado, Massachusetts, Maine, Nebraska, New York, Oregon, Pennsylvania, Vermont and Washington. All but Nebraska and Vermont are led by Democratic governors. Schneider agrees that it's important to root out bad actors exploiting Medicaid, but he argues that federal-state collaboration is essential to tackling fraud concerns while not jeopardizing people's access to care. " If they were really worried about it, they would continue to do what we did in the past, which is to work cooperatively with the state," he said. When Lindbo first heard about the potential threats to Medicaid, she got emotional. Although her family has private health insurance, Lindbo said it does not cover many of her daughter's critical services, such as the school paraprofessional who helps Greta get ready for class and assists Greta if she has a seizure." Regression is real," she said."That would just be so heartbreaking because she's worked really hard. People who work with her work really hard and those systems need to stay in place so she can continue to grow."threatened plans for World Cup celebrations across the U.S. , the federal government said this week that it's moving forward with awarding host cities including Los Angeles hundreds of millions of dollars in funding for security.Host cities have been counting on the $625 million in federal funds, which were already allocated in last year's"One Big Beautiful Bill" for security costs related to putting on the global tournament.FEMA, the Federal Emergency Management Agency, is responsible for allocating the funding to the 11 host city committees in the U.S. FEMA blamed the ongoing government shutdown of the Department of Homeland Security for the delay.The saga's not over yet. Los Angeles and the Bay Area are still waiting on those grants, according to a statement from the California Governor's Office of Emergency Services, which is responsible for disbursing federal funds to the World Cup host committees in the state., the federal government said this week that it's moving forward with awarding host cities including Los Angeles hundreds of millions of dollars in funding for security. Host cities have been counting on the $625 million in federal funds, which were already allocated in last year's"One Big Beautiful Bill" for security costs related to putting on the global tournament. L.A. will host eight matches at SoFi Stadium in Inglewood, a five-day fan festival at the Coliseum and watch parties and fan zones around the region – and those events will require additional police and resources to pull off. FEMA, the Federal Emergency Management Agency, is responsible for allocating the funding to the 11 host city committees in the U.S. Last month, officials in Miami and Kansas City raised the alarm that they may need to cancel fan plans if the money didn't come through soon. Los Angeles officials declined to weigh in at the time. In a statement provided to LAist, FEMA blamed the ongoing government shutdown of the Department of Homeland Security for the delay. "While the recent funding lapse temporarily slowed the grant process and impacted FEMA’s grants management system, DHS and FEMA have completed their review and approval of applications" the statement said."Grants supporting host jurisdictions and security efforts will begin going out soon.” But the saga's not over yet. Los Angeles and the Bay Area are still waiting on those grants, according to a statement from the California Governor's Office of Emergency Services, which is responsible for disbursing federal funds to the World Cup host committees in the state. The money will be paid out as reimbursements – but organizers can't make plans to use the funds until they know what they've been awarded. “Cal OES will continue pressing the federal government to announce the World Cup Grant Program awards so host city communities can plan responsibly and ensure the security resources needed for a global event like the World Cup are in place," a CalOES spokesperson told LAist via email. LAist has asked FEMA, Cal OES and the L.A. host committee how much money they requested for security costs in Los Angeles, but has not received a response.explores the weird and secret bits of SoCal that would excite even the most jaded Angelenos. He also covers mental health.centers serve as a “one-stop-shop” for youth ages 12 to 25 to get mental health support and form their own community. The model sees young people taking part in everything from designing the spaces of the mental health centers to offering support to their peers.UC Irvine psychology professor Stephen Schueller, who provides services at the San Juan Capistrano allcove center, says the model calls for inviting spaces that allow for drop-in visits. “It’s amazing to me that young people can come and get support right when they need it for a variety of different aspects,” he said. “People don’t need to make an appointment to come talk to me... They can just walk in and I see them right then.”, co-authored by Supervisors Holly Mitchell and Janice Hahn, directs staffers to report back in two months with funding options to bring more allcove centers to the county. The measure also backs up the existing L.A. County allcove center with $1.5 million a year in funding over the next three years.If you're enjoying this article, you'll love our daily newsletter, The LA Report. Each weekday, catch up on the 5 most pressing stories to start your morning in 3 minutes or less.Rodrigo Marquez founded Queer Latin Dance OC to teach more people how to dance and to create a safe space for the LGBTQ+ community.At Queer Latin Dance OC, salsa, cumbia and bachata are for everyone. The dance studio offers lessons to dancers of all experience levels and has created a new community hub in Orange County.: Rodrigo Marquez founded Queer Latin Dance OC at the beginning of this year to fill a gap in Orange County that he said lacks safe spaces for the LGBTQ+ community.Before taking lessons at Queer Latin Dance OC, Melba Rivera said she came in with zero dance experience. “You come as you are, no matter what level you're at or how you identify or what your experience is, everybody's here and everybody's learning,” Rivera said. “It's a very encouraging and motivating space.”For many, the dance class is more than educational — it’s a place to get away from it all, to find community and to uplift one another through art. When Rodrigo Marquez founded Queer Latin Dance OC at the beginning of this year, he said he was filling a gap in Orange County that often lacks safe spaces for the LGBTQ+ community. “I wanted to make creative communities for us to learn in a safe environment,” Marquez said. “Everyone's here to learn, and I want the pressure of whatever's going on in the world, just to forget for the next hour.”When creating his teaching plan, Marquez said he considers the range of experience his students might have. Everybody starts somewhere, he added, and the hardest part is showing up. “It is scary, but if you're already showing up, then just jump in and just forget about the world. It's a great distraction, and dancing makes you feel better,” Marquez said. Philip Lee, an elementary school teacher from Tustin, took his first class with the group Monday night, trying the quick steps of salsa. “I had a stressful day. … All my stress that I had in my neck and upper back just kind of went away,” Lee said, adding that the high energy in the room is infectious. “It was nice just laughing with people in the community and meeting new people.”“The queer community specifically, and just kind of let my guard down and just be free and laugh and enjoy being me and celebrated for a love for the arts,” Lee said. “That's not a space that is always safe.” Before taking lessons at Queer Latin Dance OC, Melba Rivera said she came in with zero dance experience. “You come as you are. No matter what level you're at or how you identify or what your experience is, everybody's here and everybody's learning,” Rivera said. “It's a very encouraging and motivating space.” Salsa and bachata are social dances, Marquez said, but one thing that makes his class unique to many is that regardless of gender identity, anyone can follow or lead. Typically, the lead falls to the male dancer, and women follow. Marquez said it was important that no one feels pressured to be one or the other. “That's why I created this, so people like me can just come and learn, not be expected to be in a gender role based on how they look,” Marquez said. “They want to dance how they feel.”Taryn Heiner said, especially in Orange County, it’s challenging to find spaces that are queer-friendly and queer-open. “That's really what makes this space so kind and warm and welcoming,” Heiner said. “We have all that base understanding of respecting one another, no matter who they are, who they love and what they do.”“So walking into a room like this, where everybody's friendly, everybody's learning, everybody's just here for the same purpose to get better, to support each other, is really important,” Rivera said. “Not just in the class, but the friendships we make outside of the classroom.” Outside of dance class, Marquez’s students meet up for monthly hikes and other get-togethers. Marquez said it is a privilege and an honor to bring people together through his love for dance. “I've seen people become friends since January, and I see them practice outside of practice,” Marquez said. “I've always had a dream to do my own dance classes, but to do it in a way where people can connect and just be themselves. It's far greater than that.” Queer Latin Dance OC offers lessons to dancers of all experience levels and has created a new community hub in Orange County.Salsa, cumbia and bachata classes are held three nights a week on Mondays, Tuesdays and Thursdays. Classes are $20 per session, but Marquez also offers a free beginner salsa class every Monday.A collaboration between CalMatters, Evident Media and Bellingcat has tracked immigration agents over the last 15 months, documenting their tactics on the ground and through mountains of video footage, since their first proof-of-concept raid in Bakersfield in January 2025.Immigration agents engaged in a pattern of force and questionable detention, aggressive tactics that courts have said likely violated the constitution, as they moved from Bakersfield to Los Angeles, and then Chicago and Minneapolis.to view a film documenting those findings and to read more about the video evidence that suggests agents’ tactics became more brazen with each stop.Border Patrol agents have been roving from city to city over the last 15 months, far from their home bases in California and elsewhere along the U.S.-Mexico border, engaged in an unprecedented mass deportation campaign.has tracked these agents, documenting their tactics on the ground and through mountains of video footage, since their first proof-of-concept raid in Bakersfield in January 2025. Exactly one year later, an Immigration and Customs Enforcement agent shot and killed Renée Good in Minneapolis, followed weeks later by the killing of Alex Pretti by a Border Patrol agent. Our investigation shows that beyond those two shootings, immigration agents engaged in a pattern of force and questionable detention, aggressive tactics that courts have said likely violated the Constitution, as they moved from Bakersfield to Los Angeles, and then Chicago and Minneapolis. In each city, federal courts stepped in to restrain them from violating civil liberties in that jurisdiction. Agents later deployed to another city. The video evidence suggests agents’ tactics became more brazen with each stop. Under President Donald Trump, immigration agents have operated without typical public accountability. Many agents wear masks. Incident reports are largely hidden from the public. “We are in a completely uncharted world now with these masked agents,” said John Roth, who served as inspector general of the Department of Homeland Security under Presidents Barack Obama and Trump. “The first thing that you do when you give an agent a gun and a badge and the authority over American people is to make sure that they follow the Constitution, period,” he said. In this new film, we focus on the activity of five agents from the US-Mexico border whose identities we’ve been able to confirm.We are not aware of any disciplinary action taken against these agents. DHS did not respond to requests for comment; the individual agents either declined to comment or didn’t respond to calls or emails. We showed the incidents to Roth and Steve Bunnell, former DHS general counsel. Both have testified before Congress, raising the alarm about what they see as a dismantling of the department’s accountability and credibility. Roth called the incidents “difficult to watch.” “There are sort of two essential components of DHS and law enforcement generally being effective, and that’s trust and credibility,” Bunnell said. “And they have lost those things to the extent they had them.”

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