Hawaii’s Medicaid Fraud Control Unit is set to lose approximately $3 million in annual federal funding after the U.S. Department of Health and Human Services (HHS) denied the unit federal certification. In a letter sent to Hawaii Attorney General Anne Lopez, HHS Inspector General March Bell stated that the unit failed to secure any criminal indictments or convictions related to Medicaid fraud, patient abuse, or neglect between 2022 and 2025, despite rising Medicaid enrollment in the state. Hawaii has the option to seek reconsideration of the decision.
The move marks an escalation in the Trump administration’s efforts to strengthen Medicaid fraud enforcement nationwide. Vice President JD Vance recently criticized Hawaii for allegedly allowing fraudsters to operate without sufficient oversight and warned that additional Medicaid-related funding could be at risk if enforcement shortcomings continue. The state’s broader Medicaid program, which serves more than 360,000 residents and received $2.2 billion in federal funding in 2024, could face further scrutiny.
Attorney General Lopez has rejected claims that Hawaii has neglected Medicaid fraud enforcement, highlighting the recovery of $14 million through civil fraud cases since 2021. She also noted that the state filed criminal healthcare fraud charges against two individuals earlier this year. Nationwide, Medicaid Fraud Control Units recorded more than 4,800 criminal convictions between 2022 and 2025, underscoring the federal government’s increasing focus on combating healthcare fraud.
Pic Courtesy: google/ images are subject to copyright
