California’s Medicaid Shell Game Steals from Taxpayers

California uses a loophole to inflate provider payments, draw down more federal funds, then diverts the money, including $4 billion, to pay for illegal aliens on Medicaid.

Rep. Burlison explains the shell game:

“Now California figured this out, that they can force the federal government to spend $9 for every $1 that it spends, and they’re using it to launder money.

“This is the way they do it, and it costs no money to California because they raise taxes on managed care companies, the companies that are providing Medicaid.

“So they go to these companies and say, we’re going to tax you, but don’t worry, we’re going to give you all of the money that we just taxed you right back.

“But in the meantime, we’re going to take that money and we’re going to pull down federal dollars, and that’ll let us have more money so that we can spend it on expanding the population for Medicaid and spend it on illegal immigrants.

“In fact, this scheme has allowed California to spend nearly $4 billion to put illegal immigrants… on Medicaid.

“Four billion dollars. This is crazy, and this total scheme is spending more money in federal dollars in California, than we send in federal dollars than the entire state of Florida spends in one year, in their entire annual budget.

“So this is absurd. This has to be corrected. California is stealing federal dollars, and they’re rubbing our noses in it by paying for illegal immigrants and encouraging them to come over here.”

In the full clip, he goes into depth on the spending crisis in the United States that our Senate politicians are not yet helping us resolve. However, we took out the summary because Stephen Miller corrected the record and some of Rep. Burlison’s information was incorrect.

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