The Medi-Cal fraud loophole Gavin Newsom doesn’t want you to know about
A loophole in federal Medicaid rules allows individuals to remain enrolled without verifying citizenship or immigration status, leading to prolonged and potentially indefinite benefits for ineligible recipients. California, under Governor Gavin Newsom, has been accused of obstructing transparency efforts regarding the scale of this issue, while similar problems exist in other states like Utah. With hundreds of thousands of cases going unresolved, critics argue the system enables widespread fraud and misuse of taxpayer funds.
- ▪Federal law allows a 90-day grace period for Medicaid applicants to verify citizenship or immigration status, but many states extend this indefinitely.
- ▪One Utah Medicaid recipient remained enrolled for 5,820 days—over 16 years—without providing proof of eligibility.
- ▪Seven in 10 'temporary' Medicaid cases exceed the 90-day limit, and an estimated 700,000 people annually receive benefits during these extended periods.
- ▪The California Department of Health Care Services delayed a public records request and demanded $182,000 to release data on these enrollments.
- ▪The Biden administration required states to continue granting grace periods to the same applicants, contributing to increased concerns about fraud.
Opening excerpt (first ~120 words) tap to expand
Opinion The Medi-Cal fraud loophole Gavin Newsom doesn’t want you to know about By Jonathan Ingram Published May 2, 2026, 11:00 a.m. ET Vice President JD Vance needs to prioritize one policy change above all others as he leads the Trump administration’s crackdown on fraud in California and elsehwere: closing a loophole that is allowing thousands of illegal aliens to receive Medicaid. Here’s the loophole: Federal law requires states to verify the citizenship or immigration status of people who apply for Medicaid (which is Medi-Cal in California), but gives them a “reasonable opportunity period” to provide documentation. The minimum grace period is 90 days, under federal regulations. a long grace period.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Opinion – Latest Op-Eds & News Commentary | New York Post.
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