Dr. Oz gives Minnesota 60 days to ‘fix’ Medicaid program or lose federal funding

Centers for Medicare & Medicaid Services (CMS) Director Mehmet Oz on Friday warned Minnesota Gov. Tim Walz that the state could lose federal funding for Medicaid unless it restores the “integrity” of its program.

In a post on website

“Our people at CMS told me they had never seen anything like this in Medicaid — and everyone from Gov. Tim Walz down should be investigated because they were asleep at the wheel,” Oz said.

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Oz Falls requested that the following corrective actions be taken within 60 days:

• Send weekly updates on anti-fraud efforts to your content management system (CMS).
• Freeze the registration of high-risk service providers for six months
• Verify all current providers as “legitimate” or remove them
• Send your CMS a corrective action plan 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 director pointed to two Minnesota Medicaid programs that have launched in recent years, noting that costs have skyrocketed.

The Housing Stabilization Services Program, expected to cost $2.6 million annually, will pay out more than $100 million in 2024, according to Oz.

The intensive early developmental and behavioral intervention program has grown from $3 million in 2018 to nearly $400 million in 2023, he said.

Walz ‘abandoned leadership’ to blame billion-dollar fraud scandal with ‘disturbing reminders of Watergate’: GOP challenger

The Centers for Medicare & Medicaid Services is calling on Minnesota Gov. Tim Walz to address an alleged Medicare fraud scheme carried out by “bad actors” within the state’s Somali community. (Scott Olson/Getty Images)

“These fraudsters used stolen taxpayer funds to buy luxury cars, buy real estate abroad, and offer kickbacks to parents who enroll their children in fake autism treatment centers,” Oz said. “Some of them may have reached the Somali terrorist group Al-Shabaab. So why didn’t Walz stop them? This is simple: because he focused everything in his politics on identity.”

Minnesota officials previously reported the issue to CMS but failed to effectively address it, according to Oz.

“We stepped in and shut down the worst program: housing. We also froze provider enrollment in a few of the most abused programs,” Oz said.

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President Donald Trump recently announced a series of actions to investigate alleged fraud schemes in Minnesota. (Alex Brandon/AP Photo)

“The message to Walz is clear: Either fix this in 60 days or start digging under your couch for some cash, because we’re done footing the bill for your incompetence.”

President Donald Trump recently announced a series of measures to crack down on and investigate fraud schemes in Minnesota, which he has attacked as a “hub of money laundering activity” and cited as the basis for his decision to end deportation protection for hundreds of Somali immigrants.

Senior Trump administration officials this week announced new investigations, including a new Treasury Department investigation into how taxpayer money was funneled to the terrorist organization Al-Shabaab, according to Secretary Scott Bessent.

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Walz’s office did not immediately respond to Fox News Digital’s request for comment.

Fox News Digital’s Brian Depesch contributed to this report.