Lawmakers seek federal probe into potential fraud, waste in California healthcare system

SACRAMENTO, Calif (FOX26) — A group of Republican state lawmakers is now calling on President Trump to order an investigation.

The group, which includes local assembly members David Tangipa, Stan Ellis and Alexander Macedo, are accusing the state and Department of Health Care Services of missing a critical deadline for the first quarter of the year, to receive matching federal funds for Medicaid.

In its letter, the group says California didn’t submit required documents to receive funds at a higher rate.

That higher rate follows the passage of Proposition 35 in November.

It allows an existing tax on health insurers to be used to pay higher reimbursement rates to health care providers.

So, the group of lawmakers is requesting an extension.

The letter says it supports any investigation aimed at identifying and eliminating fraud, waste and abuse.

Fox 26 anchor and reporter, Liz Gonzalez reached out to the State Department of Healthcare Services.

In a statement, their media relations manager says, “DHCS has not missed any deadlines related to Proposition 35, so an extension is unnecessary, no federal funding has been left on the table, and DHCS is implementing Proposition 35 in accordance with statutory requirements. This includes consulting with a stakeholder advisory committee... The first stakeholder advisory committee meeting is scheduled for Monday, April 14."