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Memorandum

Eliminating Waste, Fraud, and Abuse in Medicaid

ActiveSigned June 6, 2025
Government EfficiencyGovernmental – Healthcare RegulatoryWhite Collar Defense and InvestigationsHealthcare

Summary

This memorandum directs the Secretary of Health and Human Services to take immediate steps to eliminate waste, fraud, and abuse in the Medicaid program, particularly by ending state-directed payment schemes that inflate Medicaid reimbursements far above Medicare levels. The President orders alignment of Medicaid payment rates with Medicare, where legally permissible, to protect the program’s financial sustainability and ensure fairness across federal healthcare systems.

Agencies Impacted

  • HHS
  • Centers for Medicare & Medicaid Services (CMS)

Timeline

Immediate.

Deliverable

Immediate — HHS: Take action to eliminate waste, fraud, and abuse in Medicaid Immediate — HHS: Ensure Medicaid payment rates do not exceed Medicare levels, to the extent permitted by law

Legal Challenges

No known legal challenges.