DeSantis fraud crackdown drives nearly $1B spending plunge after providers billed impossible hours

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Robert F. Kennedy Jr. puts a $1 billion Medicaid freeze on California and Minnesota over suspected fraud. California Governor Gavin Newsom vehemently rejects these allegations, calling them 'pure politics' and blaming the Trump administration. Minnesota Governor Tim Walz's approval plummeted 31 points after a fraud investigation, indicating the severe political risks for ignoring such issues.

Florida's sweeping Medicaid fraud crackdown has helped drive a nearly $1 billion reduction in projected annual spending on behavioral therapy services alone, according to state officials, after investigators uncovered suspicious billing practices.

Tallahassee’s internal crackdown — which included discoveries of providers billing Medicaid for more hours than there are in a day — comes amid heightened federal scrutiny of Medicaid fraud, including investigations and payment reviews involving Minnesota.

The DeSantis administration said its approach aims to stop suspicious Medicaid claims before taxpayer dollars are paid out rather than trying to recover improper payments afterward. The strategy mirrors a call from HHS Secretary Robert F. Kennedy Jr. to move away from traditional "pay-and-chase" models.

"This year, we announced the most significant Medicaid integrity initiative in the history of our state, and today, I was proud to announce some of the results from these efforts," Gov. Ron DeSantis said in a news release.

VANCE TURNS UP HEAT ON STATES WITH FEDERAL CASH THREAT OVER MEDICAID FRAUD CRACKDOWN