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Five states spent over $1B in federal Medicaid funds on undocumented immigrants, prompting federal recovery efforts.
A federal audit reveals five states spent over $1 billion in Medicaid funds on undocumented immigrants, violating federal law.
Dr. Mehmet Oz, CMS administrator, said taxpayers in states like Texas and Florida are subsidizing healthcare for undocumented individuals in places such as California.
The Trump administration plans to reclaim the funds, citing misuse of emergency Medicaid—originally for life-saving care regardless of status—and other legal loopholes like "qualified alien" status or asylum designations.
California led with $4.5 billion in federal emergency Medicaid spending for undocumented immigrants in 2024.
Some states claim to use only state funds but exploit federal matching systems by taxing providers and reinvesting revenue.
Critics argue the practices misallocate taxpayer money, while states defend them as humanitarian or fiscally responsible.
Cinco estados gastaron más de $ 1B en fondos federales de Medicaid en inmigrantes indocumentados, lo que impulsó los esfuerzos federales de recuperación.