Federal watchdogs are halting over a billion dollars in Medicaid funds to California and Minnesota after AI and advanced tech uncovered rampant fraud — including billing for services to deceased patients and charging for care that happened years ago. The government demands proof those dollars are reaching real patients, not just lining pockets. Governors remain silent as states scramble to provide documentation. This isn’t the first freeze — Minnesota and California still have hundreds of millions more on hold from earlier this year. And with nearly 500 people, including doctors, recently charged in healthcare and opioid fraud schemes, the administration is sending a clear message: fraud won’t be tolerated, and perpetrators will face jail time.
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