Monday, December 15, 2025

Dr. Oz Warns Walz to Address Alleged Somali Medicaid Fraud or Lose Federal Funding: ‘We’ll stop paying’; Dr. Oz Threatens to Pull Funding From Minnesota After $1 Billion in Medicaid Funding Was Stolen by Fraudsters

Dr. Oz warns Walz to address alleged Somali Medicaid fraud or lose federal funding: ‘We’ll stop paying’
Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz on Friday warned Minnesota Gov. Tim Walz the state could lose federal Medicaid funding unless it restores “the integrity” of its program.

In a post on X, Dr. Oz claimed more than $1 billion had been stolen through a massive Medicaid fraud scheme carried out by “bad actors” within Minnesota’s Somali community, alleging some of the funds “may have even made its way to the Somalian terrorist group (al-Shabab).”

“Our staff at CMS told me they’ve never seen anything like this in Medicaid — and everyone from Gov. Tim Walz on down needs to be investigated, because they’ve been asleep at the wheel,” Oz said.

Oz demanded Walz take the following corrective measures within 60 days:

  • Send weekly updates on anti-fraud efforts to CMS
  • Freeze enrollment of high-risk providers for six months
  • Verify all current providers as “legitimate” or remove them
  • Send CMS a corrective action plan to prevent fraud in the future

“If we’re unsatisfied with the state’s plans or cooperation, we’ll stop paying the federal share of

The CMS administrator pointed to two Minnesota Medicaid programs launched in recent years, noting dramatic spikes in costs.

The Housing Stabilization Services program, projected at $2.6 million annually, paid out over $100 million in 2024, according to Oz. 

The Early Intensive Developmental and Behavioral Intervention program grew from $3 million in 2018 to nearly $400 million in 2023, he said.

“These scammers used stolen taxpayer money to buy flashy cars, purchase overseas real estate and offer kickbacks to parents who enrolled their kids at fake autism treatment centers,” Oz said. “Some of it may have even made its way to the Somalian terrorist group al-Shabab. … So why didn’t Walz stop them? That’s simple: because he went all-in on identity politics.” --->READ MORE HERE

REUTERS/Tim Evans
Dr. Oz Threatens to Pull Funding From Minnesota After $1 Billion in Medicaid Funding Was Stolen by Fraudsters:

The Centers for Medicare & Medicaid Services (CMS) threatened to withhold federal funding from Minnesota after fraudsters allegedly stole more than $1 billion set aside for Medicaid programs.
CMS administrator Dr. Mehmet Oz ordered Minnesota Gov. Tim Walz to follow a series of guidelines that crack down on the fraud and said that if the state does not comply, it will lose federal money.
“Either fix this in 60 days or start looking under your couch for spare change because we are done footing the bill for your incompetence,” Oz announced on Dec. 5.
CMS will require Minnesota officials to provide weekly updates for six months on the actions it is taking to stop fraud and to freeze enrollment of high-risk providers.
The Minnesota Department of Human Services was also ordered to create a corrective action plan outlining how it will prevent fraud going forward. Oz wants this plan submitted by the end of December.
“Our staff at CMS told me they’ve never seen anything like this in Medicaid—and everyone from Gov. Tim Walz on down needs to be investigated, because they’ve been asleep at the wheel,” Oz wrote in a X post on Dec. 5.
The Epoch Times reached out to Walz’s team for comment but did not hear back by publication time.
The CMS administrator blamed “bad actors” in Minnesota’s Somali community for being part of the fraudulent activity. --->READ MORE HERE
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