California’s “Money Laundering” Tactics: The state taxes Medicaid insurers and then makes higher payments to those same insurers with that tax revenue. The higher payments enable the state to claim additional federal matching dollars. These federal funds leave California with surplus money to spend elsewhere. This scheme effectively allows the state to “launder” federal Medicaid funds without spending any of its own money.
Unrestricted Medicaid Expansion: California uses this influx of federal money to fund large-scale Medicaid expansions. The most significant of these are extending Medicaid coverage to illegal immigrants and eliminating the asset test so wealthy people can qualify for taxpayer-financed long-term care. Because the federal dollars are money laundered, the state circumvents restrictions on federal Medicaid funding for illegal immigrants.
Broader Implications for Medicaid Financing: California’s approach highlights how states exploit the Medicaid financing structure, which burdens federal taxpayers with extra costs. This practice exploded during the Biden Administration as annual federal Medicaid spending exceeded estimates by 25 percent. The pervasiveness of Medicaid money laundering drives up federal spending and underscores the need for fundamental reforms to ensure Medicaid dollars are not used for inappropriate spending.
Read the full story at the link above. It’s INSANE. Here’s a handy chart!
Presenting useful information from legitimate experts in the Truth and Freedom movement, packaged in my own brand of outrage toward the pathologically evil and pathologically ignorant...
Presenting useful information from legitimate experts in the Truth and Freedom movement, packaged in my own brand of outrage toward the pathologically evil and pathologically ignorant...
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