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

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

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“Our CMS staff told me they have never seen anything like this in Medicaid – and everyone from Gov. Tim Walz onwards needs to be investigated because they were asleep at the wheel,” Oz said.

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Oz claimed more than $1 billion was stolen through a massive Medicaid fraud scheme carried out by “bad actors” within Minnesota’s Somali community. (@DrOzCMS via X)

Oz asked Walz to take the following corrective actions within 60 days:

• Send weekly updates on anti-fraud efforts to CMS
• Freeze registration of high-risk providers for six months
• Verify that all current providers are “legitimate” or remove them
• Send 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 portion of these programs,” Oz warned.

The CMS administrator highlighted two Minnesota Medicaid programs launched in recent years, noting dramatic cost increases.

The Housing Stabilization Services program, projected at $2.6 million per year, has paid out more than $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.

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The Centers for Medicare & Medicaid Services is calling on Minnesota Governor 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 scammers used stolen taxpayer money to buy flashy cars, purchase overseas real estate and offer bribes to parents who enrolled their children in fake autism treatment centers,” Oz said. “Some of it may even have been passed to the Somali terrorist group Al-Shebab. … “So why didn’t Walz stop them? It’s simple: because he’s all about identity politics.”

Minnesota officials previously reported the problem to CMS, but failed to effectively resolve it, according to Oz.

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

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

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

The move comes as President Donald Trump recently announced a series of actions to crack down and investigate fraud schemes in Minnesota, which he called a “hub of money laundering activity” and cited as the basis for his decision to end deportation protections for hundreds of Somali migrants.

Last week, top Trump administration officials announced new investigations, including a new Treasury Department probe into how taxpayer dollars were allegedly diverted to the al-Shabaab terrorist organization, according to Secretary Scott Bessent.

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

Breanne Deppisch of Fox News Digital contributed to this report.