Medicaid Monitor
Policy Intelligence
Medicaid Monitor
Policy Intelligence
© 2026 Lanphier Ventures, LLC
Informational use only. Not legal or compliance advice.
← All stories
State Policy·CA·July 13, 2026

California Governor Defends Medicaid Spending on Housing and Food Amid GOP Fraud Claims

California Governor Gavin Newsom is defending the state's use of Medicaid funds for housing and food services for high-cost patients, as Republican lawmakers characterize these expenditures as waste, fraud, and abuse. The state has incorporated social determinants of health services into its Medicaid program to address needs of complex, high-utilizing enrollees. Newsom acknowledges concerns about potential federal funding cuts but maintains the state's holistic care approach is appropriate. This political tension creates uncertainty for managed care organizations operating California's CalAIM program, which relies heavily on these non-traditional service categories.

Why it matters

MCOs contracted under CalAIM must prepare for potential federal scrutiny or funding restrictions on housing and food services that are central to their population health and cost containment strategies.

Managed Care · LTSS

Read the full article at kffhealthnews.org

Share this briefing

You might also like

← All stories

Get the daily briefing.