On July 21, HHS Secretary Robert F. Kennedy Jr. and Dr. Mehmet Oz, who heads Medicaid programs federally, announced they’re deferring over $850 million from the state of California over its Medicaid-funded home and community-based services program called In-Home Supportive Services (IHSS). From a purely economic standpoint, home and community-based services care is cheaper than care in hospitals or nursing homes. As of May 2026, nearly a million disabled and aging Californians are authorized for home and community-based services through IHSS. The program’s growth, according to Tyler Sadwith, who directs Medicaid services in the state, is proof that it’s working. Additionally, Zirker notes, in California, Medicaid home care is not administered through private companies, unlike some other states.