California’s Medicaid program is facing scrutiny after Sen. John Kennedy (R-LA) highlighted a series of controversial taxpayer-funded benefits that include exorcisms, tribal prayers, housing assistance, gym memberships, bicycles, scooters, and even meal preparation services.
During a Senate Appropriations Subcommittee hearing Tuesday, Kennedy questioned acting Attorney General Todd Blanche about the administration’s efforts to crack down on waste and fraud in federally funded programs.
According to Kennedy, California receives massive federal support for its Medicaid system, with taxpayers contributing roughly $9 for every $1 spent by the state itself. “California will actually pay a healthcare provider, I didn’t know this was a medical expertise, to pay for exorcisms,” Kennedy said during the hearing.
Blanche confirmed several of the senator’s claims as Kennedy listed unusual benefits reportedly covered under California’s Medicaid program. The controversy intensified after reports emerged detailing how California Medicaid covers exorcisms, tribal prayers, herbal remedies, and activities intended to support “community inclusion.”
Kennedy also questioned why Medicaid funds were being used for nontraditional benefits such as housing support, gym memberships, scooters, bicycles, and in-home meal preparation. “California Medicaid program will pay for herbal medicines, meal deliveries. They’ll pay for housing. I don’t know what housing has to do with healthcare,” Kennedy said.
When asked about gym memberships and bicycles being covered, Blanche responded, “Several states do, but California does for sure.”
Kennedy further noted that California has used Medicaid money to help repay student loans for some individuals entering healthcare professions. “I was not aware of the student loans repayment,” Blanche responded.
Earlier this month, the administration froze $1.3 billion in federal Medicaid funding tied to California’s program. California’s Medicaid program has ballooned dramatically in recent years, with state spending more than doubling since 2019 and now totaling roughly $220 billion—exceeding the entire general fund budgets of most states.
