Dr. Oz announced what he described as the largest enforcement action in Medicaid history, saying his administration has begun demanding financial documentation from states and deferring hundreds of millions of dollars in payments amid concerns about fraud and improper spending.
According to Dr. Oz, the move requires states to submit detailed receipts for Medicaid expenditures, with a significant portion of funding potentially withheld while reviews are conducted.
“So we are taking the largest action of its kind ever in Medicaid history, by asking the state to give us all the receipts, and we’re going to defer could be hundreds of millions of dollars,” Dr. Oz said. “A quarter of money that’s not going to go to the state.”
Dr. Oz specifically addressed criticism from Minnesota’s congressional delegation, pushing back on claims that the action would harm residents.
He said the state has sufficient financial reserves to absorb the impact.
“Now I just heard all that belly aching from Congressman and Congresswoman from Minnesota,” Dr. Oz said.
“The reality is they have a rainy day fund that’s about $4 billion so they have money.”
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He stressed that the action is not aimed at Minnesota residents but at holding state leadership accountable for their handling of Medicaid funds.
“These actions are not designed in any way to hurt the people of Minnesota,” Dr. Oz said.
“What they are going to do is hold accountable the leaders of Minnesota who advocated their responsibility.”
Dr. Oz said the administration is rejecting any attempt to shift the financial burden of Minnesota’s alleged Medicaid fraud onto taxpayers in other states.
“And what they’re asking everyone to do, just so we’re clear, is they want 49 states, the people in those states to belly up money, to put forward money into the federal tax system, to then pay for the fraud in half in Minnesota,” he said.
“That’s not going to happen under our watch.”
He said President Donald Trump has made clear that federal agencies will not allow such cost shifting.
“And President Trump is adamant about this,” Dr. Oz said.
“You’re not going to see that from any of our agencies. We’re going to hold people accountable.”
Dr. Oz also referenced similar action taken against other states, including California, over Medicaid funds provided to illegal immigrants. He said those funds were improperly labeled as state money despite originating from federal sources.
“You touched on California earlier,” Dr. Oz said.
“I’ll be clear about this. We’ve already deferred $1.3 billion from California, Minnesota and a few other states for illegal immigrants receiving funds from state Medicaid, claiming it’s not federal, but we know it’s federal.”
He argued that states are effectively acknowledging wrongdoing by returning the money.
“How do I know they’re already paying us back?” Dr. Oz said.
“They’re already admitting they’re guilty”
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