The top Republican on the Senate Budget Committee is seeking answers from both the Newsom and Biden administrations regarding the repayment of $52 million in 'improperly claimed' Medicaid disbursements made via 'MediCal' to certain immigrants.
Sen. Charles Grassley of Iowa is sending letters to California Gov. Gavin Newsom and Centers for Medicare & Medicaid Services (CMS) administrator Chiquita Brooks-LaSure, requesting updates on California's promise to return $52 million in wrongful disbursements to the federal government.
A representative for the California Department of Health Care Services (DHCS) acknowledged an inspector general’s report on the matter and pledged to repay the feds by June 30.
The investigation found that California had improperly claimed $52,652,698 from October 2018 to June 2019. The Health and Human Services (HHS) Inspector General recommended that California refund the amount and adjust its algorithm for determining Medicaid disbursements to certain immigrants.
Grassley raised concerns that California did not adjust its methodology as recommended and questioned why the repayment process is manual rather than a lump sum, given California's annual budget of around $300 billion.
The audit highlighted that federal Medicaid benefits are typically limited to citizens and 'qualified' noncitizens, such as refugees and those lawfully admitted for permanent residence.
Grassley criticized the use of taxpayers' money to provide federal health insurance to ineligible illegal immigrants, calling for transparency on the repayment process.
He also emphasized that only emergency services are usually covered for 'noncitizens with unsatisfactory immigration status' after five years of coverage under Medicaid.
California's DHCS expressed plans to repay the $52 million by June 30 and has collaborated with CMS to refine service identification methodology and payment processes.
