California owes $53 million after immigrant spending

Medicaid Repayment Demand

California asked to refund $52.7 million to the federal government for wrongly claimed Medicaid payments to noncitizens with unsatisfactory immigration status.

Federal Investigation Findings

Department of Health & Human Services Office of Inspector General discovered discrepancies in payments made by California between October 2018 and June 2019.

Biden's Immigration Measures

President Biden signed an executive order suspending asylum processing to reduce the influx, particularly when daily numbers exceed 2,500.

Restrictions on Medicaid Reimbursement

States generally can't claim federal reimbursement for noncitizen Medicaid treatment except in emergencies, a rule California violated.

Outdated Calculation Methods

California used an outdated percentage to calculate costs for nonemergency services to noncitizens, leading to overclaimed reimbursements.

Recommendations and Repayment Plan

The Office of Inspector General suggests California refund the $52.7 million and collaborate with authorities to determine further repayments.

State's Acknowledgment and Repayment Timeline

California plans to repay the money by June 30, acknowledging the findings while addressing the deficit announced by Governor Newsom.

Fiscal Challenges Amidst Repayment Obligation

Governor Newsom's announcement of a $26.7 billion deficit, escalating to $45 billion with additional spending commitments, adds to California's financial strains.