California Attorney General Rob Bonta announced Tuesday that the state is leading a coalition of 20 states in a lawsuit against President Donald Trump’s administration over the transfer of Medicaid data to the Department of Homeland Security (DHS).
Bonta argues that the move undermines federal privacy laws and jeopardizes public health.
Filed in the Northern District of California, the lawsuit challenges the Trump administration’s decision to allow the Centers for Medicare & Medicaid Services (CMS) to share Medicaid enrollee data with federal immigration authorities, including U.S. Immigration and Customs Enforcement (ICE), as part of a broader immigration enforcement initiative.
“Upon information and belief, the U.S. Department of Health and Human Services (HHS)’s Centers for Medicare & Medicaid Services (CMS) handed over a trove of individuals’ protected health data obtained from States, including California, Illinois, and Washington, to other federal agencies, including the Department of Homeland Security (DHS),” the complaint states.
“Millions of individuals’ health information was transferred without their consent, and in violation of federal law.”
Bonta said Tuesday’s lawsuit marks the 28th legal challenge California has filed against the Trump administration in just 23 weeks — more than one per week.
“President Trump, Secretary Kristi Noem, and Secretary Robert F. Kennedy Jr. are weaponizing Medicaid to fuel their anti-immigration campaign,” Bonta said during a virtual press conference.
“They’re threatening the personal health data of 78.4 million individuals who are enrolled in Medicaid and the children’s health insurance program, CHIP, for their mass surveillance and federal immigration enforcement plans.”
The Associated Press previously reported that the data transferred includes names, addresses, Social Security numbers, immigration status, and claims data for Medicaid enrollees in several states.
The plaintiffs argue that the sharing of this information violates multiple federal laws, including the Health Insurance Portability and Accountability Act (HIPAA) and the Administrative Procedure Act (APA).
“This isn’t about cutting waste or going after fraud,” Bonta said.
“This is about going after vulnerable people who entrusted the state and the federal government to help them access health care, a basic human right.”
A spokesperson for HHS, however, defended the agency’s actions and said the effort is part of a legitimate oversight initiative aimed at ensuring taxpayer dollars are not used to fund healthcare for illegal immigrants.
“HHS acted entirely within its legal authority – and in full compliance with all applicable laws – to ensure that Medicaid benefits are reserved for individuals who are lawfully entitled to receive them,” HHS spokesman Andrew Nixon said in a statement.
“We are not only protecting taxpayer dollars – we are restoring credibility to one of America’s most vital programs.
“The American people deserve accountability. HHS is delivering it.”
Nixon added that under the leadership of CMS Administrator Dr. Mehmet Oz, the agency “is aggressively cracking down on states that may be misusing federal Medicaid funds to subsidize care for illegal immigrants – that includes California.”
The plaintiffs include attorneys general from Arizona, New York, Illinois, Oregon, and 16 other states.
They say the data transfer will create a chilling effect, discouraging immigrants and their family members from enrolling in emergency Medicaid services to which they are legally entitled.
The complaint warns that “fear and confusion stemming from the disclosures” will lead to disenrollment from emergency healthcare programs, forcing state governments and safety-net hospitals to bear the cost of federally mandated services.
It also predicts that public health will suffer due to decreased healthcare utilization for childbirth and other emergency conditions.
Bonta emphasized that California’s Medi-Cal program, which serves one in three residents, relies on both federal and state funding.
However, Bonta claims that California uses state-only dollars to cover more than two million illegal aliens “regardless of their immigration status.”
“The Trump Administration has upended longstanding privacy protections with its decision to illegally share sensitive, personal health data with ICE,” Bonta said in a statement.
“In doing so, it has created a culture of fear that will lead to fewer people seeking vital emergency medical care.
“I’m sickened by this latest salvo in the President’s anti-immigrant campaign.
“We’re headed to court to prevent any further sharing of Medicaid data — and to ensure any of the data that’s already been shared is not used for immigration enforcement purposes.”
While HHS maintains that the data sharing is lawful and necessary to prevent fraud, the plaintiffs claim that the administration is using the Medicaid system to pursue a political agenda.
They are now vowing to stop the plan in court.
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