Legis
Healthcare
Executive order · Friday 6 June 2025

Eliminating Waste, Fraud, and Abuse in Medicaid

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  • Objective: Focus on eliminating waste, fraud, and abuse in the Medicaid program to preserve its integrity for vulnerable Americans.
  • Current System Issues:
    • States and healthcare providers have exploited Medicaid through mechanisms that inflate payment rates.
    • The practice of "taxing" healthcare providers and returning funds as Medicaid payments leads to increased federal spending and undermines state contributions.
    • States have been able to pay providers up to three times the Medicare rate, creating fiscal imbalances.
  • Financial Impact:
    • State Directed Payments have surged, reaching $110 billion in 2024, threatening both federal funds and the long-term viability of Medicaid.
  • Commitment:
    • Emphasis on ensuring seniors and Medicaid recipients have access to quality care without the negative impacts of fraud and waste.
  • Action Required:
    • The Secretary of Health and Human Services is tasked to take steps to align Medicaid payment rates with Medicare, following applicable laws.
  • Legal Disclaimer:
    • This memorandum does not create enforceable rights or benefits for any party against the U.S. or its entities.