Trump administration threatens states over Medicaid coverage for undocumented immigrants

The Trump administration is threatening to halt federal Medicaid funding to states it says are illegally using the safety-net insurance program to cover healthcare for undocumented immigrants.

Under federal law, states are only allowed to use federal Medicaid funds for emergency medical services for people in the country illegally. But “some states have pushed the boundaries,” the CMS said in a press release on Tuesday announcing that regulators would ramp up oversight in the area.

That includes heightened evaluations of states’ quarterly Medicaid spending reports, reviewing states’ financial management systems and looking for ways to close loopholes in existing Medicaid eligibility rules, the CMS said.

The agency also urged states to update their internal controls, eligibility system