CMS Revokes Biden-Era Medicaid Guidance, Giving States Leeway To Recoup Funds From Beneficiaries Accused But Not Convicted Of Fraud

CMS has quietly rescinded a Biden-era guidance letter that had prohibited states from clawing back benefits or imposing lockouts on Medicaid beneficiaries accused of fraud or abuse, signaling a sharp shift away from the prior administration’s focus on protecting due process and coverage continuity toward a more aggressive enforcement stance aimed at preserving federal Medicaid dollars under the Trump administration.