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Wednesday, May 13, 2026
VP Vance: Hawaii has 'not taken Medicaid fraud seriously'
By Video @ 6:40 PM :: 194 Views :: Ethics, Health Care

Hawaii mentioned at the 4:30 mark

HNN 2022: Despite plenty of potential cases, Hawaii lags in Medicaid fraud and abuse prosecutions

Vance named California, Hawaii and New York as states that have 'completely not taken the fraud issue seriously' -- 

FOX: Vice President JD Vance warned Wednesday that states could lose federal funding if they fail to aggressively pursue Medicaid fraud, escalating the Trump administration’s pressure campaign on governors and state Medicaid officials.

"We are sending letters that will require them to show that they are effectively and aggressively prosecuting Medicaid fraud in their states. And if they do not, if they do not aggressively prosecute Medicaid fraud, we are going to turn off the money that goes to these anti-fraud units," Vance said during a fraud news conference Wednesday.

Vance said the federal government has provided states with "billions of dollars" for Medicaid Fraud Control Units and warned that funding could be cut off if states fail to comply with the crackdown. He pointed to states that have received billions of dollars in federal funding to protect against fraud but have yet to produce a conviction or indictment. 

The warning came as the administration announced it is deferring $1.3 billion in Medicaid reimbursements from California and Vance accused the state of failing to take fraud seriously. California officials have disputed the administration’s claims.

NYP: JD Vance issues ultimatum to 50 states: Crack down on fraud or Trump admin will cut Medicaid funding “blocking $1.3 billion in reimbursements for care at 800 California hospices suspected of bilking taxpayers.”

CBS: We visited “ground zero” for hospice fraud: Los Angeles, California (March, 2026)

AP: Officials say California Medicaid funds to be deferred over suspected fraud

PBS: The Department of Health and Human Services' internal watchdog has sent letters to state attorneys general warning them to vigorously investigate possible fraud or risk losing federal money.

Hawaii AG: MEDICAID FRAUD CONTROL UNIT | Criminal Justice Division

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