Washington, DC — The National Health Law Program (NHeLP) strongly condemns the Centers for Medicare & Medicaid Services’ decision to cut off $259 million in Medicaid funding to Minnesota and freeze enrollment of new durable medical equipment suppliers in Medicare. These actions escalate a troubling pattern of weaponizing fraud rhetoric to justify harmful cuts to essential health care programs for millions of low-income people across the country.
NHeLP also condemns the administration’s announcement that Vice President JD Vance will lead a new federal “fraud” task force. Elevating this initiative to the highest levels of government signals a political strategy designed to give cover to deeply unpopular Medicaid cuts that will harm families and communities. These actions by the administration come on the heels of this same president issuing pardons to multiple people who have been convicted of billions of dollars in Medicaid and Medicaid fraud.
“Medicaid is a powerful force for good in communities across our country. It covers health screenings, cancer treatment, prenatal care, mental health services, nursing home care, home and community-based services, and a variety of other benefits that allow millions of people to access the care they need to live with dignity,” said Sarah Somers, Legal Director at NHeLP. “Exaggerated fraud claims are being used as a fig leaf to disguise cuts to Medicare and Medicaid, and to intimidate states. When the federal government withholds funding or freezes parts of the program, it creates instability that hurts people first. Families miss appointments. Providers question whether they can continue services. Communities lose trusted sources of care.”
“Medicaid supports millions of people across the country, including children, older adults, people with disabilities, and families working to make ends meet,” said Jennifer Cannistra, Executive Director at NHeLP. “Communities are already bracing for a trillion dollars in sweeping Medicaid cuts under the so-called One Big Beautiful Bill Act. Further destabilizing state programs through funding freezes and politicized task forces only compounds the harm. Health care systems depend on stability and partnership. Using fraud concerns to justify actions that threaten coverage and disrupt care puts the wellbeing of entire communities at risk.”
“Cutting off government funding under the guise of fraud prevention is not routine oversight. It is an assault on Medicaid and Medicare, and it is placing peoples’ lives in the crosshairs,” said Jane Perkins, Litigation Director at NHeLP. “We will continue to use every legal tool available to make sure eligible people do not lose access to the health care they need.”
