Fed OIG audit raises questions about immigrant Medicaid claims
A federal Office of Inspector General audit of California’s Medicaid program found the state improperly sought $52.7 million in federal capitation reimbursements for people with "unsatisfactory immigration status," and the report noted states that expand coverage beyond federal emergency Medicaid must generally use state funds for nonemergency services. The Fox News piece uses the OIG audit, quotes from senators and the vice president’s remarks on television, and reporting on state budget fights (Minnesota, Illinois, California) to show the audit undercuts Democratic claims that undocumented immigrants do not receive Medicaid and to illustrate how the issue is being leveraged in the current federal funding/shutdown debate.
🔍 Key Facts
- Office of Inspector General audit (2024) found California 'improperly' requested $52.7 million in federal capitation reimbursements for people with unsatisfactory immigration status
- OIG noted federal Medicaid reimbursement is generally limited to emergency-treatment for certain noncitizens and that state programs extending coverage must pay for nonemergency services with state funds
- The audit and state practices are being cited amid late‑Sept/Oct 2025 budget talks and the federal government shutdown debate, with states such as Minnesota, Illinois and California involved in related discussions