California owes $53 million after immigrant spending
California asked to refund $52.7 million to the federal government for wrongly claimed Medicaid payments to noncitizens with unsatisfactory immigration status.
Department of Health & Human Services Office of Inspector General discovered discrepancies in payments made by California between October 2018 and June 2019.
President Biden signed an executive order suspending asylum processing to reduce the influx, particularly when daily numbers exceed 2,500.
States generally can't claim federal reimbursement for noncitizen Medicaid treatment except in emergencies, a rule California violated.
California used an outdated percentage to calculate costs for nonemergency services to noncitizens, leading to overclaimed reimbursements.
The Office of Inspector General suggests California refund the $52.7 million and collaborate with authorities to determine further repayments.
California plans to repay the money by June 30, acknowledging the findings while addressing the deficit announced by Governor Newsom.
Governor Newsom's announcement of a $26.7 billion deficit, escalating to $45 billion with additional spending commitments, adds to California's financial strains.