Jul. 3—Maine has joined a multi-state lawsuit alleging the Trump administration illegally shared Medicaid data to assist with immigration enforcement, which critics say raises concerns about the misuse of private health care information.
The suit was filed Tuesday in U.S. District Court in California and includes 20 states as plaintiffs.
It says the federal government’s practice of keeping states’ Medicaid records confidential changed abruptly in June when the U.S. Department of Health and Human Services shared personal health data from California, Illinois and Washington with the U.S. Department of Homeland Security.
The lawsuit does not name Maine as one of the states that had its information shared, but says several states “fear the administration’s intent to improperly share their state’s sensitive data in the same way” and that some states have received requests for data concerning the use of Medicaid services for immigrant communities.
“Defendants’ illegal actions carry serious consequences,” the suit says. “States will lose federal funds as fear and confusion stemming from the disclosures cause noncitizens and their family members to disenroll, or refuse to enroll, in emergency Medicaid for which they are otherwise eligible, leaving states and their safety net hospitals to foot the bill for federally mandated emergency healthcare services.
“States will also ultimately bear the negative public health costs associated with reduced utilization of healthcare for childbirth and other emergency conditions.”
The administration had not filed a response to the suit as of Thursday afternoon. But officials with DHHS and the Department of Homeland Security pushed back on the allegations. They said the data transfer was legal and related to an effort to ensure Medicaid benefits are only accessed by those who are legally eligible to receive them.
“This oversight effort — supported by lawful interagency data sharing with DHS — is focused on identifying waste, fraud, and systemic abuse,” said DHHS Communications Director Andrew Nixon in a written 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.”
Department of Homeland Security Assistant Secretary Tricia McLaughlin said President Donald Trump has “consistently promised to protect Medicaid for eligible beneficiaries.”
“To keep that promise… (the Centers for Medicare & Medicaid Services) and DHS are exploring an initiative to ensure that illegal aliens are not receiving Medicaid benefits that are meant for law-abiding Americans,” McLaughlin said in a statement.
Sharing of Medicaid data within state and federal government is permitted but comes with strict limits, according to the suit, which says the administration violated the federal Administrative Procedures Act, acted unconstitutionally by placing conditions on Medicaid funding, and exceeded the statutory authority of administrative agencies.
The states said the sharing of data was “far broader than would be needed” to prevent waste and abuse, and that they have information to believe the federal government has additional plans for the data, including compilation of a database to be used for mass deportations, other immigration enforcement and mass surveillance.
“There is a reason our country has decided to legally protect health data; it is some of the most sensitive data that exists about us,” Maine Attorney General Aaron Frey, who is representing Maine in the case, said in a statement Thursday. “The Trump Administration’s choice to share information used to provide health care for immigration enforcement purposes is disturbing and unlawful. People deserve to receive health care without worrying that their information is going to be used against them.”
The suit said states could see a lack of trust from immigrants who may become afraid to enroll in Medicaid programs they are eligible for if the data is used for those purposes.
“This includes both undocumented immigrants, who are legally entitled to Medicaid coverage for emergency medical services including childbirth, and legal residents, who reasonably fear that DHS will initiate immigration enforcement actions against them,” the suit says.
Hospitals could also see financial impacts because they would be likely to see more patients who aren’t enrolled in Medicaid and can’t afford care, but would still be obliged to provide it since federal law requires hospitals to provide emergency medical treatment to everyone in need, the states said.
The suit seeks a declaration that the data transfer was unauthorized and illegal as well as orders to prevent further transfers and use of Medicaid data for immigration enforcement, and an order for the destruction of personally identifiable Medicaid information already unlawfully transferred to DHS and the Department of Government Efficiency.
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