California taxed Medicaid plans $274 per member per month.
Commercial plans? $1.75.
That’s a 157-to-1 ratio.
It’s not a typo.
It’s the fingerprint left on the safe.
The podcast episode breaks down the $24 billion Medicaid tax loophole that seven states exploited for years. The scheme was simple: tax Medicaid insurers at absurd rates, use that tax revenue as your “state contribution” to get federal matching funds, then reimburse the insurers entirely with federal money.
Net contribution from the states: zero.
Net cost to federal taxpayers: $24 billion annually.
On January 29, 2026, CMS Administrator Dr. Mehmet Oz finally shut the door.
In this episode:
The 157-to-1 tax ratio that California used to game the system
How the B1/B2 statistical test became a “lockpick” for the federal treasury
Why New York got a shorter deadline than California (they were warned and did it anyway)
The $13 billion hole in California’s budget starting in 2028
Why did your insurance premiums go up to subsidize this scheme
What happens next (spoiler: they’re already looking for the next loophole)
The winners: California, New York, Massachusetts, and Michigan.
The losers: You.
The scheme is over.
Until they find the next one.
🎧 Listen above. 31 minutes.
The healthcare cartel counts on you not paying attention.
60,000+ physicians refuse to comply.
-Rojas out.
