Dr. Oz Urges Governor Walz to Address Medicaid Fraud or Risk Federal Funding

Dr. Oz Urges Governor Walz to Address Medicaid Fraud or Risk Federal Funding

Mehmet Oz, the Administrator of the Centers for Medicare & Medicaid Services, issued a stark warning to Minnesota Governor Tim Walz on Friday, emphasizing the potential loss of federal Medicaid funding if the state does not improve the integrity of its program.

In a statement posted on X, Oz claimed that over $1 billion had been misappropriated through a significant scheme involving Medicaid fraud, allegedly orchestrated by individuals within Minnesota’s Somali community. He expressed concern that some of these funds may have been funneled to the terrorist organization al-Shabab.

Our team at CMS has never encountered anything of this magnitude in the realm of Medicaid. It is crucial that everyone from Governor Walz on down faces scrutiny, as they have displayed negligence in this matter, Oz stated.

Details of the Allegations

Oz has called for swift action from Walz, demanding that corrective measures be implemented within a two-month timeframe. If CMS finds the state’s response or collaboration inadequate, they may cease funding for the federal share of these programs, Oz warned.

Furthermore, Oz pointed to two Minnesota Medicaid programs that have experienced significant spikes in costs in recent years. The Housing Stabilization Services program, which was initially projected to cost $2.6 million annually, astonishingly paid out over $100 million in 2024. Meanwhile, the Early Intensive Developmental and Behavioral Intervention program saw an increase from $3 million in 2018 to nearly $400 million in 2023.

Scammers’ Exploitation of Taxpayer Funds

According to Oz, scammers took advantage of this system, using stolen taxpayer funds to purchase luxury vehicles, invest in overseas real estate, and provide kickbacks to parents who enrolled their children in fraudulent autism treatment centers. He posed the critical question: Why did Walz not intervene? Oz asserted that the reason lies in the Governor’s commitment to identity politics.

Despite previously informing CMS of the problem, Minnesota officials reportedly failed to take effective action to resolve it. In response to this, Oz announced that the worst of the programs, specifically housing, had been shut down and that provider enrollment in several abused programs had been frozen.

The Call for Accountability

The message to Walz is simple: Address this issue within 60 days, or begin searching for alternative funding sources, as we can no longer subsidize your failures, Oz stated decisively.

Recently, former President Donald Trump took a firm stance against fraud in Minnesota, characterizing the state as a central hub for money laundering operations. This stands as the basis for his decision to end deportation protections for numerous Somali immigrants.

In the wake of these developments, senior Trump administration officials have announced new investigations, including a Treasury Department inquiry into allegations that taxpayer funds were misdirected to al-Shabab, as relayed by Secretary Scott Bessent.

Governor Walz’s Response Remains Pending

As of now, Governor Walz’s office has yet to respond to inquiries regarding these allegations and Oz’s demands. The unfolding situation has put increased pressure on state officials to act decisively and restore public trust in the Minnesota Medicaid program.

While the allegations of Medicaid fraud represent a significant challenge for Walz’s administration, the responsibility now lies with state leaders to decisively address these claims and take the necessary steps to secure federal funding and ensure the welfare of Minnesota’s vulnerable populations.

As the situation develops, stakeholders will continue to monitor efforts to safeguard taxpayer money and maintain the integrity of public health programs.

This report includes contributions from Fox News Digital’s Breanne Deppisch.