Vance singles out Hawaii as weak on Medicaid fraud policing
Federal officials declared a nationwide Medicaid fraud crackdown Wednesday, citing
Vice President JD Vance announced the effort at the
“That is a complete disgrace,” said Vance, who chairs an anti-fraud task force that Trump formed in March.
Vance cited
“Guess how many convictions or indictments
Vance said letters were sent to every state’s
Hawaii’s MFCU is part of the state
The MFCU, according to the department’s website, is staffed by investigators, attorneys and auditors charged with pursuing suspected civil and criminal Medicaid fraud by providers and administrators. The unit also investigates abuse and neglect of Medicaid beneficiaries and residents of board and care facilities.
According to the website, the MFCU has authority to investigate and prosecute fraud involving Medicaid providers and program administration, but not to investigate or prosecute fraud committed by Medicaid beneficiaries unless the beneficiary is colluding with a provider.
Medicaid provider fraud can involve billing the program directly or through healthcare providers for medicine, supplies, equipment or services that are unnecessary, duplicative, overpriced, not provided or not covered.
Providers can include doctors, nurses, dentists, hospitals, medical clinics, adult day care facilities, nursing homes, home healthcare providers, pharmacies, laboratories and equipment suppliers.
Investigations, according to Hawaii’s MFCU, are initiated based on complaints, referrals and information received from various sources that include Medicaid program administrators, managed care organizations,
According to information submitted to the Legislature, Hawaii’s MFCU budget for the current fiscal year is
MFCU staff frequently work with other federal, state and local law enforcement agencies to investigate and prosecute Medicaid fraud, according to the unit’s website.
Vance said the federal government’s letter is fundamentally an effort to improve the federal-state working relationship on Medicaid fraud enforcement.
“We’re going to the states and saying, ‘Here are the things that we can do to work on this issue together,’” he said. “And, of course, if they don’t work with us there are going to be penalties. But we don’t want to get there.”
Vance also said if states don’t cooperate and continue to have fraud issues, then the federal government could turn off other resources for states to run Medicaid programs. Already, federal officials are deferring
The vice president said hundreds of billions of dollars can be saved from Medicaid fraud nationally and help extend the life of the program without costing taxpayers more. Vance also said the issue with fraud affects states dominated by both major political parties.
“You may think that this is purely a red state or blue state issue,” he said. “That’s actually not true.”
Vance said
But he also singled out
Ferguson accused such states of funding jobs programs “for blue state lawyers” using federal money provided to MFCUs and alleged that state attorney general offices were lining their pockets while taxpayers and Medicaid beneficiaries were being defrauded.
Criticism of
A 2014 state audit found that Hawaii’s detection and enforcement activities against Medicaid fraud by staff in the Med-QUEST Division of the state
The report cited a 2011 federal
“Division management has demonstrated a minimal commitment to safeguarding the Medicaid program against unnecessary or inappropriate use of services and excess payments,” the audit said. “Management has not developed a formal plan to govern its fraud and abuse detection and investigation program, nor has it been proactive in establishing formal policies and procedures for detecting, investigating, and remedying fraud. In addition, it has not dedicated sufficient resources for detecting and investigating Medicaid fraud and is unable to produce complete information about the results of these efforts.”
The audit said DHS, which coordinates with the MFCU, had three staff positions for detecting and investigating Medicaid fraud, and that only one position was filled while the audit was being done.
“Without an experienced investigator, the division cannot comply with federal and state regulatory requirements for preliminary investigations of all suspected Medicaid fraud cases,” the audit said.
In a 2019 follow-up report for the Legislature, the state auditor said DHS had implemented only parts of a recommended plan to better address fraud and abuse.
“We take instances of fraud, waste and abuse very seriously and are confident that our federal partners will find no cause to withhold payment from our state,” she said.
WAYS TO REPORT MEDICAID FRAUD IN
>> Call the
>> Fill out an online MFCU complaint form at .
>> Call a
>> Call a DHS hotline at 808-692-8072 to report suspected fraud by Medicaid providers.
© 2026 The Honolulu Star-Advertiser. Visit www.staradvertiser.com. Distributed by Tribune Content Agency, LLC.


Fed: Does Banking Consolidation Harm Households?
Average US long-term mortgage rate eases to 6.36% in first drop after two straight weekly increases
Advisor News
- The 6X Formula for leveraging content marketing with AI
- When a home becomes difficult to insure, the plan changes
- The inheritance gap: Helping clients plan for money that hasn’t arrived
- After the midterms: Addressing your clients’ tax concerns
- Berkeley arts tax heads toward passage while public bank measure looks likely to fail
More Advisor NewsAnnuity News
- DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
- John Hancock launches new fixed indexed annuity suite
- Annuities to play a larger role in workplace retirement plans
- FHLBank Pittsburgh Announces Results in 2026 Board Election
- Regulators advance shorter, streamlined annuity buyers guide
More Annuity NewsHealth/Employee Benefits News
- Kansas' rate of children without health insurance tops national average for second year
- Incoming chair of US Senate panel will seek healthcare overhaul, but unclear on details
- New Virginia subsidies help lure people back to health insurance
- High costs limit rural Nebraskans’ access to health care
- Medicare is already reading your 2026 tax return
More Health/Employee Benefits NewsLife Insurance News
- Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
- Military Briefs: November 12-18
- Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
- FHLBank Pittsburgh Announces Results in 2026 Board Election
- New Jackson Study Finds the "Sandwich Generation" Squeeze Comes from More Than Two Sides and It’s Quietly Draining Retirement Savings
More Life Insurance News