NEWS ALERT: Bombshell study accuses blue state of ‘money laundering’ federal dollars to cover healthcare for illegal aliens

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The sanctuary state of California is in the HOT SEAT over the vast amount of taxpayer dollars they are using to provide healthcare for illegal aliens.

Last month it was reported that California is spending $9.5 BILLION to cover illegal aliens on their Medi-Cal healthcare plan – up from the original estimate of $6 billion.  This week, the state just asked for another $3.4 BIL for the Medi-Cal plan. And a scheme has been uncovered that reveals how California and New York are funneling federal taxpayer dollars into providing services to illegal aliens.

Below are three major reports on this issue you need to see!

From Fox News on February 13: Skyrocketing healthcare budget for illegal immigrants haunts blue state taxpayers
A California budget official revealed this week that taxpayers in the Democrat-run state are paying billions of dollars more on healthcare for illegal immigrants than previously known.

Guadalupe Manriquez, the California Department of Finance program budget manager, told the state Assembly Budget Committee Monday the state is “spending $9.5 billion total funds” to “cover undocumented individuals in Medi-Cal” in the current year.

Republican Assemblyman Carl DeMaio noted that the cost of healthcare for illegal immigrants could be enough to help solve some of the state’s budget woes and “avoid going into the rainy day fund,” The Center Square reported. He said the number originally floated was roughly $6 billion.

From Fox News on March 12: California exploiting Medicaid ‘loophole’ to pay billions for illegal immigrants’ healthcare, study says
California is funneling billions of federal taxpayer dollars into paying for illegal immigrants’ healthcare, a new study claims.

“They are exploiting an existing loophole within law,” Paul Winfree, president and CEO of the Economic Policy Innovation Center (EPIC), told Fox News Digital. “States can do these provider taxes to funnel money back to the state, that they are then using to pay for, to put illegal immigrants on Medicaid. That’s quite literally what’s going on.”

The paper released by EPIC and the Paragon Health Institute draws a line between California’s Medicaid provider taxes and what, on paper, appears to be nearly $4 billion in state funding going toward illegal immigrants’ healthcare and other initiatives. But that funding is actually coming from the federal government, according to EPIC, via reimbursements to California.

EPIC announced: California is laundering federal money to cover illegal immigrants through Medicaid, to the tune of $3.9 billion. Sound crazy? Here is a breakdown on how the scheme works.

With schemes like this, California can funnel more and more federal dollars through insurers without picking up any of the bill. 😱 This is another example of pervasive waste and fraud and underscores the need for fundamental reforms to ensure Medicaid dollars are being used responsibly.

The Paragon Health Institute explained:

The playbook:
🔹California taxes Medicaid insurers
🔹Then uses that money to boost Medicaid payments
🔹The federal government matches the “higher spending”—sending CA an extra $19B
🔹The state redirects funds to cover illegal immigrants & wealthy seniors

“Congress has to close the loophole that has been in place for the last 40 years that states are abusing. That alone could save $630 billion over the next 10 years,” EPIC stated.

Paul Winfree, Founder, President & CEO of EPICforAmerica exposed the whole sham, and said both California and New York are involved in it.

“If this was a private company, these folks would go to jail,” Winfree declared.  WATCH THIS:

The House Freedom Caucus is furious, writing, “BOMBSHELL REPORT: CA is funneling federal $$ into health care for illegal aliens. Even worse? “They are exploiting an existing loophole within law.” Congress needs FIX THIS NOW.”

Now it gets worse… California is asking for $3.4 BILLION MORE

From KCRA.com: Gov. Gavin Newsom’s Department of Finance on Wednesday notified state lawmakers that California will need a $3.44 billion loan to cover costs associated with the state’s Medicaid program known as Medi-Cal.

The letter did not specify why exactly the program fell short on funds. While experts note there are many factors that go into Medicaid costs, some are pointing to the money the state spends providing health insurance to undocumented people.

The letter comes weeks after Newsom’s administration officials told lawmakers they had underestimated the cost.

San Diego County Supervisor Jim Desmond wrote, “Gov. Newsom’s Dept. of Finance just requested a $3.44 billion loan for Medi-Cal—a direct result of the state’s disastrous decision to expand free healthcare for illegal immigrants. The cost of this program has ballooned to $9.5 billion, far more than they estimated.”

“These are the real cuts that need to happen—stopping handouts to illegal immigrants and ending wasteful spending on nonsense projects abroad.”

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