Sen. John Kennedy, R-La., pressed Acting Attorney General Todd Blanche during a Senate hearing Tuesday about reports that California's Medicaid program covers exorcisms and other faith-based healing practices, amid growing scrutiny of the state's healthcare spending.
Medi-Cal has faced intensifying federal oversight after Vice President J.D. Vance's anti-fraud task force identified an estimated $600 million in suspected fraud within California's Medicaid system. The Trump administration subsequently suspended $1.4 billion in federal funding for California home health and hospice programs last week.
California's overall Medicaid spending has more than doubled since 2019, rising from roughly $100.7 billion to a projected $222 billion in 2026, according to state budget documents.
During the hearing, Kennedy pointed to reports first published by The Wall Street Journal that Medi-Cal covers exorcisms and other spiritual practices under its coverage programs.
"California's got 12% of the population in the last ten years," Kennedy told Blanche. "They're responsible for half of these new so-called health providers to provide exorcisms and other things. Now, what the hell are we doing about it? Why has this gone on for so long?"
Blanche did not immediately respond with a specific answer to Kennedy's questions about enforcement actions regarding the spending.
What the Left Is Saying
Democratic lawmakers and California officials have defended Medi-Cal's coverage of traditional healing practices as part of broader efforts to address historical injustices against Native American communities. In 2024, Gov. Gavin Newsom's administration expanded Medi-Cal coverage for tribal medicine practitioners including traditional healers and natural helpers within tribal communities.
Services covered include music therapy, spiritual interventions such as ceremonies, rituals, and herbal remedies provided by practitioners who have served as spiritual leaders within an American Indian tribe for at least two years and are contracted by an Indian Health Care Provider.
Newsom said the expansion was designed to assist in "helping heal the historical wounds inflicted on tribes."
"Like many of the issues that plague successive generations of Native people, those inequities can be traced back to the historical atrocities the U.S. inflicted on tribes across the country," Newsom wrote in a press release announcing the Medi-Cal expansion. "By supporting greater access to traditional medicine and healing, we are taking another step toward a healthier, brighter future."
Proponents argue these services are culturally significant healthcare benefits for a historically underserved population, not general religious practices available to all beneficiaries.
What the Right Is Saying
Republican critics say the expanded coverage raises serious questions about oversight and whether taxpayer dollars are being properly spent. Kennedy's line of questioning centered on accountability for what he described as an alarming pattern of spending growth in California's Medicaid program.
Federal officials have pointed to systemic fraud concerns, with Vance's task force identifying hundreds of millions in suspected fraudulent claims within California's Medicaid system. The $1.4 billion funding suspension targeted home health and hospice programs specifically.
Conservatives have called for comprehensive audits of Medi-Cal spending practices. A group of California lawmakers from both parties sent a letter requesting an audit of rising healthcare costs, citing the "alarming nature" of expenditure growth in the state's Medicaid program.
The Trump administration has signaled it will continue scrutinizing state Medicaid programs that appear to have high rates of improper payments or questionable coverage decisions.
What the Numbers Show
California's Medi-Cal spending trajectory shows significant growth: $100.7 billion in 2019 compared to a projected $222 billion in 2026, representing more than a 120% increase over seven years, according to state budget documents reviewed by Fox News.
The federal government suspended $1.4 billion in funding for California home health and hospice programs based on findings of an estimated $600 million in suspected fraud identified by the anti-fraud task force.
It remains unclear how much Medi-Cal has spent covering services provided by traditional healers or natural helpers specifically, as the California Department of Health and Human Services did not respond to requests for comment from Fox News Digital. The expansion into tribal healing practices was announced as part of California's broader effort to address health disparities among Native American populations.
California represents approximately 12% of the total U.S. population but accounts for a significant share of new healthcare provider registrations in the Medicaid system, according to Kennedy's remarks during Tuesday's hearing.
The Bottom Line
The Senate testimony highlights growing tension between federal and state authorities over Medi-Cal spending oversight. The Trump administration has taken aggressive action by suspending $1.4 billion in funding while investigating fraud concerns, while California officials have defended tribal healing coverage as culturally appropriate healthcare for underserved communities.
How much taxpayer money has actually been spent on exorcisms or traditional healing practices remains unclear because the California Department of Health and Human Services did not provide data before publication. The actual expenditure figures could clarify whether these services represent a significant cost driver or a small portion of Medi-Cal's overall spending.
Congressional Republicans are likely to continue pressing for answers on Medicaid fraud oversight, while California officials have emphasized that tribal healing coverage serves specific cultural purposes rather than general religious practices. The outcome of ongoing federal investigations and potential audits may determine whether the funding suspension is lifted or expanded.