The Trump administration officials are pushing California to return over $1 billion in federal taxpayer funds that may have been used to cover the health care costs of illegal aliens.

The Centers for Medicare and Medicaid Services announced in May that it was increasing oversight on states that illegally used Medicaid funding to provide illegal immigrants with health care services, noting that Medicaid funding is generally available to illegal aliens only for emergency medical services.

'We are teaming up to combat healthcare fraud so the money can be used for American citizens who need it!'

As part of the announcement, the CMS declared that states could be forced to reimburse the federal government for funds spent on noncitizens.

CMS Administrator Dr. Mehmet Oz revealed in October that the agency found more than $1 billion of federal taxpayer funds were spent on Medicaid for illegal aliens.

“And my team is getting it back,” he remarked.

Oz called CMS’ findings “shocking.”

“In a preliminary review of six states, we found those states improperly using federal tax dollars for their allegedly state-funded program and providing coverage to individuals, including some with criminal records of murder and assault,” he stated.

Those findings included $1.3 billion in California, $2.1 million in Washington, D.C., $30 million in Illinois, $2.4 million in Washington, $1.5 million in Colorado, and $5.4 million in Oregon.

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Mehmet Oz, Bill Essayli. Photo by Patrick T. Fallon / AFP via Getty Images

Oz explained that the states had been notified and that “many” had begun issuing refunds to CMS. However the administrator provided an update on Wednesday, stating that additional uncovered data revealed the total had reached $1.8 billion across eight states.

He announced that the CMS is withholding nearly $300 million from California, which Oz labeled “the worst offender,” until the state’s leadership proves “they’re spending the money properly.”

Bill Essayli, first assistant U.S. attorney for the Central District of California, stated, “California must return more than $1 billion to the federal government after an audit by @DrOzCMS and his team uncovered federal dollars being spent on healthcare for illegal immigrants. We are teaming up to combat healthcare fraud so the money can be used for American citizens who need it!”

California officials have rejected claims that the federal funds were misused.

The California Department of Health Care Services previously told the New York Times, “Claims that California improperly used federal Medicaid dollars to provide health care to undocumented immigrants are flatly false and misrepresent both federal law and standard administrative practice.”

Gov. Gavin Newsom's office did not respond to a request for comment.

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Gavin Newsom. Photo by Justin Sullivan/Getty Images

Washington, D.C., has agreed to pay back over $650,000 to CMS by mid-November.

An Illinois Medicaid spokesperson previously told PolitiFact, “Once again, the Trump administration is spreading misinformation about standard uses of Medicaid dollars.”

“This is not a reality show, and there is no conspiracy to circumvent federal law and provide ineligible individuals with Medicaid coverage. Dr. Oz should stop pushing conspiracy theories and focus on improving health care for the American people,” the spokesperson added.

A Washington State Health Care Authority also pushed back on CMS’ claims, calling the estimates shared by Oz “inaccurate.”

“We were very surprised to see Dr. Oz’s post, especially considering we continue to work with CMS in good faith to answer their questions and clear up any confusion,” the spokesperson said.

Colorado’s Department of Health Care Policy & Financing also insisted the state did not break the law.

“Our payments for coverage of undocumented individuals are in accordance with state and federal laws,” a spokesperson told PolitiFact. "The $1.5 million number referenced by federal leaders today is based on an incorrect preliminary finding, and has been refuted with supporting data by our Department experts."

Oregon Health Authority previously told KOIN that CMS’ claim was “false and mischaracterizes not just this essential part of our nation’s emergency care infrastructure, but also an ongoing, routine audit process.”

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