Key facts
- Hawaii's Medicaid Fraud Control Unit denied federal certification.
- Unit will lose approximately $3 million in annual federal funding.
- Denial due to lack of criminal indictments/convictions for Medicaid fraud or patient abuse (2022-2025).
- State can request reconsideration of the decision.
- Part of broader Trump administration campaign against healthcare fraud.
The Trump administration has cut off approximately $3 million in annual federal funding to Hawaii's Medicaid Fraud Control Unit. The U.S. Department of Health and Human Services Inspector General, March Bell, informed Hawaii Attorney General Anne Lopez that the unit has been denied federal certification due to a failure to consistently bring criminal cases. Specifically, the unit obtained no criminal indictments or convictions for Medicaid fraud or patient abuse and neglect between 2022 and 2025, despite increased enrollment in the program. This action is part of a broader push by the Trump administration and Vice President JD Vance to combat healthcare fraud, with Vance previously warning states about consequences for failing to police the program effectively. Without federal certification, Hawaii's broader Medicaid funding could also be at risk. Attorney General Lopez has contested the characterization, pointing to $14 million recovered in civil cases since 2021 and two criminal healthcare fraud charges filed earlier this year. The state can request reconsideration of the decision.