Seven states found a loophole to extract $24 billion annually from federal taxpayers while contributing nothing to Medicaid. California alone took $13 billion. The scheme was technically legal until January 29, 2026.

Dutch Rojas breaks down:

• The 157-to-1 tax ratio California used to game the system ($274/month for Medicaid plans vs. $1.75/month for commercial)
• How states used the B1/B2 statistical test as a "lockpick" for the federal treasury
• Why New York got a shorter deadline than other states (they were warned and did it anyway)
• The $13 billion hole in California's budget starting 2028
• Why your insurance premiums went up to subsidize this scheme
• What CMS Administrator Dr. Mehmet Oz did to shut it down

The winners: California, New York, Massachusetts, Michigan.

The losers: Federal taxpayers. You.

The scheme is over. Until they find the next one.

Read the full investigation: dutchrojas.substack.com

X: @DutchRojas

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