Trump Admin Busts Open Gavin Newsom’s $146 BILLION Medi-cal FRAUD Machine

CMS chief Dr. Mehmet Oz drops bombshell figures exposing how Democrat-run states are bleeding Medicare and Medicaid dry

Fox News just laid bare the staggering scale of waste, fraud, and abuse plaguing California’s Medi-Cal program under Governor Gavin Newsom.

In a hard-hitting segment, Kayleigh McEnany highlighted the eye-watering numbers: $146 billion per year lost to fraud in the state’s Medicaid expansion.

“That is slightly more than Warren Buffett’s estimated net worth. It is more than the GDP of several small countries,” McEnany stated.

The revelation comes as the Trump administration ramps up its nationwide assault on entitlement fraud through the White House Anti-Fraud Task Force and aggressive oversight by Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz.

Oz didn’t hold back when asked about the bigger picture.

“How big do you think this fraud is nationwide?” McEnany pressed.

“We believe nationwide it’s $100 billion in Medicare and Medicaid,” Oz replied. “If you’re worried about Medicare being there for you… and you’re worried that it’s going to expire… This fraud, getting rid of it, will DOUBLE the life expectancy of the Medicare trust fund.”

He added, “That’s a massive increase in numbers of years of extra Americans can trust that the program will be there for them.”

Oz painted a grim picture of how these programs have been gamed in Democrat-led states, using real-world examples of systemic abuse.

“I’ll give you Minnesota as an example. When every child in the neighborhood has autism because their mothers are being paid to say that, then NO child really is getting autism services,” he said.

“In New York state, the number one job in the state… it’s personal care services because we’re paying to have people get their kids to walk the groceries up the stairs for them.”

The comment come amid a broader federal push that has already triggered arrests, funding holds, and demands for accountability from blue-state governors. 

City Journal’s deep dive into the California scandal confirms the $146 billion figure stems from a conservative 15-25% fraud rate applied to Medi-Cal spending since Newsom’s expansions began in 2019.

Federal officials are now zeroing in on California’s hospice and home-care sectors, where Los Angeles County alone is suspected of $3.5 billion in bogus billing. 

Recent DOJ actions have netted arrests in Southern California health-care schemes totaling tens of millions, part of a pattern the Trump team says Newsom’s administration ignored for years.

Oz’s CMS has sent pointed letters to Newsom and other governors demanding detailed program-integrity plans, provider screening data, and eligibility verification reforms. 

The administration has already deferred Medicaid payments to states like Minnesota pending corrective action and is using data analytics to flag high-risk billing spikes in personal care, autism services, and adult day programs.

Critics on the left call it political targeting. Americans watching their tax dollars vanish see something else: long-overdue enforcement.

The Trump administration’s America First approach is delivering what previous ones never did—real scrutiny of programs meant for citizens, not grifters. 

By rooting out this $100 billion national drain, the White House is not just saving money. It is extending the life of Medicare for the seniors who paid into it and ensuring Medicaid actually serves those who need it most.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.


More news on our radar


Share this article
Shareable URL
Comments 2

Leave a Reply.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

1
Share
0 items

modernity cart

You have 0 items in your cart