On July 21, 2026, the U.S. Department of Health & Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) announced the deferral of federal Medicaid payments exceeding $1 billion to the states of California and Minnesota. This measure pertains to approximately $867.5 million for California and $199 million for Minnesota.
The deferral is pending review as both states are required to submit additional documentation concerning high-risk claims under evaluation. This review aims to ensure compliance and proper use of federal Medicaid funds.
The announcement underscores the ongoing oversight responsibilities of HHS and CMS in managing federal healthcare program funds. It reflects the commitment to maintaining integrity within the Medicaid program through rigorous review processes.