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The Trump administration says it's deferring over $1 billion in Medicaid payments to Minnesota and California because of suspected fraud and noncompliance. Health Secretary Robert F. Kennedy Jr. said Tuesday the move aims to prevent fraud before it occurs, rather than recovering money after prosecution. The move is part of the administration's strategy to crack down on fraud amid rising healthcare costs. But this approach has come with errors and lack of evidence in some cases. Kennedy says states can regain the funding by proving the legitimacy of payments. Minnesota's state Medicaid director said federal officials hadn't explained the basis of the deferral amount to the state. He accused the federal government of leading a “war on Medicaid.”

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Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz speaks before Vice President JD Vance at the Wisconsin Air National Guard facility at Milwaukee Mitchell International Airport, Wednesday, July 8, 2026, in Milwaukee. (AP Photo/Mark Schiefelbein, Pool)

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Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz speaks before Vice President JD Vance at the Wisconsin Air National Guard facility at Milwaukee Mitchell International Airport, Wednesday, July 8, 2026, in Milwaukee. (AP Photo/Mark Schiefelbein, Pool)

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Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz speaks before Vice President JD Vance at the Wisconsin Air National Guard facility at Milwaukee Mitchell International Airport, Wednesday, July 8, 2026, in Milwaukee. (AP Photo/Mark Schiefelbein, Pool)

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The Trump administration is proposing a new rule to keep hospitals from charging markups on discounted drugs for Medicare patients and says that could save consumers $1.1 billion next year, according to estimates obtained by the AP. The rule expected Thursday comes as the Republican administration tries to show it’s tackling the challenges of affordability for U.S. families. Also, former CIA Director John Brennan sued the Trump administration Wednesday, demanding a court order that would require officials to preserve records from investigations he says are targeting him for “what amounts to phantom criminal conduct.” The lawsuit says the records would shed light on the motivations of government officials who are investigating Brennan.

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FILE - A dose of Wegovy, a drug used for weight loss, is displayed on March 1, 2024, in Front Royal, Va. (AP Photo/Amanda Andrade-Rhoades, File)