Dr. Oz warns Walz to address alleged Somali Medicaid fraud or lose federal funding: ‘We’ll stop paying’
In a recent statement on X, CMS Administrator Mehmet Oz warned Minnesota Governor Tim Walz that the state runs the risk of losing federal Medicaid money unless it restores “the integrity” of its program. Oz alleged that a large-scale Medicaid fraud spree—carried out by “bad actors” in Minnesota’s Somali community—has siphoned off more than $1 billion, some of which may have even reached the Somali terrorist group al‑Shabab.
Oz said his agency officials had never seen a situation like this and that everyone from Gov. Walz downward must be examined because they have neglected the issue. He demanded that Walz implement the following corrective steps within 60 days:
* Submit weekly updates on anti‑fraud activities to CMS.
* Freeze enrollment of high‑risk providers for six months.
* Verify all existing providers as legitimate or remove them.
* Deliver a comprehensive corrective‑action plan to CMS to stop future fraud.
“If we’re not satisfied with the state’s plans and cooperation, we’ll halt the federal share of Medicaid,” Oz warned.
Oz also highlighted two Minnesota Medicaid initiatives that have seen sudden cost spikes. The Housing Stabilization Services program, expected to cost $2.6 million yearly, ended up spending over $100 million in 2024. Meanwhile, the Early Intensive Developmental and Behavioral Intervention program ballooned from $3 million in 2018 to nearly $400 million in 2023. He accused scammers of using stolen taxpayer dollars to buy luxury vehicles, buy overseas properties, and offer kickbacks to parents enrolling their children in fraudulent autism treatment centers—some money allegedly funneling to al‑Shabab.
According to Oz, the state had reported the problem to CMS earlier but failed to address it properly. He noted that CMS intervened by shutting down the most egregiously abused program and suspending provider enrollment in several high‑risk programs. The ultimatum to Gov. Walz is clear: either fix the problems in 60 days or face the consequences, as CMS refuses to continue funding Minnesota’s oversight failures.
On the national stage, former President Donald Trump recently announced a series of measures aimed at cracking down on alleged fraud schemes in Minnesota—a region he has branded a hub of money‑laundering activity. These moves include the termination of certain deportation protections for Somali migrants and fresh investigations, such as a Treasury Department probe into potential diversion of taxpayer funds to al‑Shabab, led by Secretary Scott Bessent. The Walz administration has not yet responded to Fox News Digital’s request for comment.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
