California uses Medicaid “loop” to pay for health care for non-incorporated: Learning

First on Fox: California is sending money to millions of federal taxpayers to pay for health care for illegal immigrants, a new study claims.

Paul Winfree, president and CEO of the Center for Economic Policy Innovation (EPIC), told Fox News Digital Digital.

“States can pay these provider taxes to remit money back to the state and then use it for payments to include illegal immigrants in Medicaid. That’s actually the truth.”

Papers published by EPIC and Paragon Health Institute set a line between California’s Medicaid Provider Tax, and on the surface, nearly $4 billion of its own state funding appears to be going to health care and other initiatives for illegal immigrants.

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However, according to Epic, the funding actually comes from the federal government, through reimbursement to California.

Winfree suggests that could be a field of withdrawing federal funds as House Republicans struggle to find $1.5 trillion to $2 trillion in savings to offset the cost of President Donald Trump’s budget priorities.

Under current law, states must pay Medicaid providers the same amount as taxes.

The federal government then matched those payments 60% to help states make up for some Medicaid costs.

“Medicaid spending should have been jointly funded by the federal government and states. But states increasingly design Medicaid money laundering programs that result in large amounts of federal spending without any state financial obligations,” the report said. “California colluded with insurance companies covering Medicaid beneficiaries to create one of the cruelest people- The money laundering program resulted in California receiving more than $19 billion in federal funding, from April 2023 to December 2026, without any state donations.”

The paper continues that the funds “are used to implement significant expansions in Medicaid to fund illegal immigration and long-term care (LTC) for the rich.”

“The program enriches insurance companies, attracts illegal immigrants to the United States, and adds mountains to federal debt, all for the sacrifice of Americans,” it said.

Donald Trump addressed the crowd during a campaign in Summerville, South Carolina on September 25, 2023. (Shaan Rayford/Getty Images)

Winfree said closing a vulnerability that allowed states like California to significantly increase provider taxes, saving up to $630 billion — something Republicans are looking for as much as $20 trillion in savings or more during the budget settlement process.

House and Senate Republicans are seeking to use their majority to pass a massive bill covering Trump’s border security, defense, energy and tax policies.

They did this because the settlement allowed the Senate to lower the threshold for its passage from 60 votes to 51, but only if the legislative measures are related to budget and fiscal policy.

Republicans passed last month as part of the framework solution and have now sent it to the relevant committees and directed how much to find in the cuts, or in some cases spending extra money.

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The Energy and Commerce Commission, which oversees Medicaid and Medicare, is charged with cutting $880 billion.

Republicans insist that they just hope to root waste, fraud and abuse, but democratic opponents of the Trump Budget Act are accusing the Republicans of trying to significantly cut federal health benefits for millions of Americans.

“One thing Congress is currently considering is limiting tax loopholes for Medicaid providers. This is actually one of the most important offsets in the Medicaid portfolio when the Senate Energy and Commerce Committee and the Finance Committee can focus on the settlement bill during the Senate period,” Winfree said.

He cited a forecast that eliminating the vulnerability could save up to $630 billion, but added that it is an unlikely situation.

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“They are more likely to reduce the so-called safe harbor. In other words, what they want to do is reduce the number of games including this kind of game. If that happens, it is more likely to affect some big blue state than it is red, just because it is really because the blue country of blue has actually tested this type of gimmick of gimmick of gimmick’winfie,

Even if not completely eliminated, reform taxes could still save billions of dollars in federal spending.

Fox News Digital addressed California’s Department of Public Health, but no response.