By The American Tribune | Created at 2025-03-20 10:58:54 | Updated at 2025-03-20 23:11:54
12 hours ago
Rep. Richard Hudson (R-NC) says he has uncovered massive Medicaid fraud. In order to stop this waste, he has introduced a bill called the ‘Protect Medicaid Act.’ According to the North Carolina Republican, Democratic states use money laundering tactics to allow them to divert Medicaid funds to illegal immigrants.
The issue started when California extended its state Medicaid programs, called Medi-Cali, to illegal immigrants. This obviously created a massive budget deficit when illegals who do not pay taxes began using the benefit. The Paragon Health Institute and the Economic Policy Innovation Center (EPIC) published a study together, where they explored the ‘money laundering’ tactics that plague this program.
Rep. Hudson took to X to say that it’s unfair for illegal immigrants to profit from state programs. He said, “States are abusing a loophole to funnel your tax dollars toward Medicaid benefits for illegals. It’s outrageous, and it’s far past time Congress passes my Protect Medicaid Act to stop it. No more rewarding those who break our laws on YOUR dime.”
Hudson issued a written statement to Breitbart News, where he expanded his argument. In this document, he said,” States are abusing a loophole to funnel federal funds toward Medicaid benefits for those in our country illegally at the expense of hardworking taxpayers. They’re jeopardizing care for our most vulnerable Americans – pregnant women, individuals with disabilities, and the elderly – while incentivizing more illegal immigration.”
He ended his remarks by exhorting his fellow representatives to pass the bill. Hudson said, “It’s far past time Congress passes my Protect Medicaid Act to stop it. No more rewarding those who break our laws on American taxpayers’ dime.” The two NGOs offered their own thoughts on how California is able to provide healthcare to illegals even though this is technically illegal.
Paragon Health Institute, which co-authored a study on the same topic, told Breitbart that in order to cover its expanded population, the blue state “resorted to a money laundering scheme to have federal taxpayers indirectly pay for the state’s largesse.” The document added, “California uses most of the $5.2 billion remaining from its money laundering scheme to pay the full cost of Medicaid coverage to illegal immigrants, resulting in health insurance plans wholly paid by the American taxpayer.”
The NGO said, “Federal law prohibits federal Medicaid funds from covering illegal immigrants. Therefore, technically, California must pay for this population using state money. However, as this scheme shows, the state directly increased capitation rates to offset the tax. The increased capitation rates are then fully covered by the federal government, and the state can use the equivalent amount of revenue to pay for costs such as Medicaid for illegal immigrants.”
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Their statement included revelations that the Biden administration made the situation even more dire. Ir read, “California’s Medicaid expansion has cost more than earlier projections because of the significant increase in illegal immigration during the Biden Administration. In 2020, the LAO estimated that expanding Medicaid benefits to illegal immigrants would cost about $3 billion per year and cover 1.15 million people. Today, the Migration Policy Institute estimates there are 2.74 million illegal immigrants in California – although the actual number is likely even higher.”
Watch a video explaining the issue here:
Congress can close this loophole, through which California is laundering federal money to cover illegal immigrants, in the reconciliation bill.
Eliminating states ability to tax Medicaid providers would reduce spending by at least $630 billion over the next 10 years. https://t.co/nrJ6wa8PPi pic.twitter.com/5SU9eQfZ0d
— 𝙿𝚊𝚞𝚕 𝚆𝚒𝚗𝚏𝚛𝚎𝚎 (@paulwinfree) March 13, 2025
Paragon and EPIC concluded their remarks by looking into the ballooning costs of the program. They said, “While the state originally projected it would cost $3 billion per year, California officials recently said the state expects to spend $9.5 billion for illegal immigrants’ Medicaid from FY 2024-2025. Coincidentally, this is how much funding California has generated since 2023 from the federal government as a result of their enhanced Medicaid insurer laundering scheme.”
Featured image from embedded video
