Taxpayers are funding California’s Medicaid shell game
My latest at Blaze
Minnesota got headlines and prosecutions for Medicaid fraud. California runs a cleaner, legalized version — and major outlets still treat it as progressive governance.
Federal prosecutors in Minnesota have launched one of the largest Medicaid fraud crackdowns in American history. Raids. Indictments. Billions of dollars. A system designed to help the poor became a loot bag for criminals and grifters. California saw those headlines and said, “They should have consulted us!”
Sacramento’s progressive class has spent years perfecting a cleaner version of the same scam — one that stays inside the lines, collects federal dollars on paper, and sends the bill to taxpayers everywhere else. Call it “legal.” Call it “approved.” Call it “routine.” None of those words makes it legitimate.
In 2004, the Government Accountability Office warned Congress that states were gaming Medicaid through intergovernmental transfers. States would shuffle public money through a circular process to make spending look real, inflate federal matching payments, then cycle the funds back to themselves. The GAO described “round-trip” arrangements that generated federal dollars without exposing states to true financial risk and that undermined the balance Congress intended.
If you want to read about California’s grift, check out my book: The Myth of California. The Amazon Kindle version was released in 2025, and spent a number of months as an Amazon bestseller (even #1 in a few categories). The paperback and audiobook will be released later this year.
Endorsements for “The Myth of California”
“California was once America’s “Promised Land” where people flocked to find gold, good weather, and opportunities in everything from movies to manufacturing. It was the agricultural epicenter of the world, known as the “salad bowl” of the planet. But decades of leftist leadership has destroyed everything but the weather. It’s become “Paradise Lost” with homelessness, unanswered crime, and choking tax rates and regulations causing people to flee in stunning numbers to get to places where their families can live without the boot of big government on their necks and cultural cuckoos setting the atmosphere of the lifestyle. Chad Hagan details what happened in his riveting book, “The Myth of California: How Big Government Destroyed the Golden State.” It’s the tragic story of how the irrational left destroys everything it touches and how one state exchanged its gold for garbage.
- Mike Huckabee, Former Governor of Arkansas, Bestselling Author, and U.S. Ambassador to Israel
“My father was a car salesman in a town of 800 people in Northern Minnesota. He had one vacation in his working life, and we took a trip to California. He had a friend who had settled in Carlsbad years earlier and wanted to visit. I was 10. My brother was 11, and our sister was 7. We were in awe. It was a modest home, beautifully maintained, with a yard full of fruit trees. We picked oranges and ate them in the yard. We had grapefruit off the trees for breakfast. I dreamed of moving to California for years. No longer! Chad Hagan’s book, The Myth of California, will make you disappointed, infuriated, and then just plain sad. It is a cautionary tale about how politicians can destroy a paradise in one lifetime. Ultimately, unchecked political power serves only itself. The citizens are included only to pay the bills. It is also a testament to how the crazies run the world. Most of us just want to go to work, come home and relax, and build a family and life. The crazies don’t think that way. They are loud, and they vote. Ultimately, politicians whose only interest is in power, cave in to them. (A government permit needed to wear heels taller than 2 inches in Carmel? Spare me!) As Californians now flee in droves, the stories they tell disabuse us of any notion of paradise. This book does that in spades. Read it!”
- John Linder, Former U.S. Congressman (GA-7)