Dr. Oz gives Minnesota 60 days to ‘fix’ Medicaid program or lose federal funding
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Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz warned Minnesota Gov. Tim Walz on Friday that the state could lose federal Medicaid funding unless he restores the “integrity” of the program.
In a post on
“Our staff at CMS told me they had never seen anything like this in Medicaid and that everyone, from Governor Tim Walz on down, needed to be investigated because they fell asleep at the wheel,” Oz said.
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Oz claimed more than $1 billion was stolen through a massive Medicaid fraud scheme run by “bad actors” in Minnesota’s Somali community. (via @DrOzCMS X)
Oz requested Walz take the following corrective actions within 60 days:
- Submit weekly updates to CMS on anti-fraud efforts
- Freezing the registrations of high-risk providers for six months
- Verify that all existing providers are “legitimate” or remove them
- Submit a corrective action plan to CMS to prevent future fraud
“If we are not satisfied with the state’s plans or cooperation, we will stop paying the federal share of these programs,” Oz warned.
The CMS administrator noted dramatic increases in costs, noting two Minnesota Medicaid programs launched in recent years.
According to Öz, the “Housing Stabilization Services” program, which was projected to be $2.6 million annually, paid over $100 million in 2024.
The “Early Intensive Developmental and Behavioral Intervention” program grew from $3 million in 2018 to nearly $400 million in 2023, he said.
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The Centers for Medicare and Medicaid Services is demanding Minnesota Gov. Tim Walz address an alleged Medicare fraud scheme run by “bad actors” within the state’s Somali community. (Scott Olson/Getty Images)
“These fraudsters stole taxpayers’ money to buy flashy cars, buy real estate abroad, and offer kickbacks to parents who enroll their children in fake autism treatment centers,” Oz said. “Some may have even reached the Somali terrorist group Al-Shebab… “So why didn’t Walz stop them? “It’s very simple: Because he went all-in on identity politics.”
According to Oz, Minnesota officials had previously reported the problem to CMS but were unable to effectively resolve it.
“We stepped in and shut down the worst program, housing. We also froze service provider registrations for several of the most abused programs,” Oz said.
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President Donald Trump recently announced he would take a series of actions to investigate alleged fraud schemes in Minnesota. (Alex Brandon/AP Photo)
Oz added, “Our message to Walz is clear: Either fix this within 60 days or start looking under your seat for spare money, because we’re done paying the price for your incompetence.”
The move comes after President Donald Trump recently announced a series of actions to disrupt and investigate fraud schemes in Minnesota, which he called a “hub of money laundering activity” and cited as the basis for his decision to end deportation protections for hundreds of Somali immigrants.
Last week, senior Trump administration officials announced new investigations, including a new Treasury Department investigation into how taxpayer dollars were allegedly directed to the terrorist organization Al Shabaab, according to Secretary Scott Bessent.
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Gov. Tim Walz’s office did not immediately respond to Fox News Digital’s request for comment.
Fox News Digital’s Breanne Deppisch contributed to this report.
