Feds increase oversight of Medicaid benefits for 'non-citizens'

UPI

28-05-2025

Centers of Medicare and Medicaid Administrator Mehmet Oz on Tuesday cautioned states to ensure they comply with federal law regarding Medicaid benefits for people who have not legally entered the nation. File Photo by Chris Kleponis/UPI | License Photo
May 27 (UPI) -- The Centers for Medicare & Medicaid Services is increasing its oversight of states to prevent misuse of Medicaid funding to provide services for those who unlawfully entered the United States.
Federal Medicaid funding is only available for emergency medical services for "non-citizens with unsatisfactory immigration status" when they otherwise would qualify for Medicaid coverage, the Health and Human Services Department said in a news release shared with UPI.
Some states, though, "have pushed the boundaries" and made taxpayers liable for benefits that are not allowed by federal law.
"Medicaid is not and cannot be a backdoor pathway to subsidize open borders," CMS Administrator Dr. Mehmet Oz said.
"States have a duty to uphold the law and protect taxpayer funds," Oz added. "We are putting them on notice - CMS will not allow federal dollars to be diverted to cover those who are not lawfully eligible."
CMS is increasing federal oversight of Medicaid at the state level to identify and stop unlawful spending through:
Focused evaluations of state Medicaid spending reports.
In-depth reviews of states' financial management systems.
Assessments of eligibility rules and policies to close loopholes.
"Medicaid funds must serve American citizens in need and those legally entitled to benefits," said Drew Snyder, deputy administrator and director of the Center for Medicaid & CHIP Services.
"If states cannot or will not comply, CMS will step in," Snyder said.
Any unlawful spending of Medicaid dollars by states on "non-citizens" is subject to recoupment of the federal share of such expenses, according to the HHS Department.
Snyder on Tuesday notified respective state officials of the increased oversight in a letter with the subject, "Ending taxpayer subsidization of open borders."
He cited President Donald Trump's Feb. 19 executive order requiring federal agencies to uphold the rule of law, thwart the waste of taxpayer dollars and protect benefits for U.S. citizens.
CMS "is committed to faithfully implementing the president's executive order," Snyder said.
"The plain text of federal law ... generally prohibits illegal aliens from obtaining most taxpayer-funded benefits," he wrote.
Federal law makes it national policy that "'aliens within the nation's borders not depend on public resources to meet their needs,'" and "'it is a compelling government interest to remove the incentive for illegal immigration provided by the availability of public benefits,'" Snyder said.
He encouraged all states to review their policies, systems and internal controls to ensure each legally complies with federal law when claiming medical assistance and administrative expenditures.
The Congressional Budget Office in October reported that the Biden administration's open-border policy cost taxpayers more than $16.2 billion to provide Medicaid-funded emergency services for "illegal aliens" after President Joe Biden took office.