Minnesota Gov. Tim Walz is facing a stern warning from the head of the Centers for Medicare and Medicaid Services (CMS) that if he doesn't restore "the integrity" of his state's Medicaid program, he'll lose federal funding.
A staggering $1 billion is believed to have been stolen through a massive Medicaid fraud scheme carried out by "bad actors" within Minnesota's Somali community. Dr. Oz claims some of the funds may have even made its way to the terrorist group al-Shabab, sparking outrage among lawmakers and experts.
Oz demanded Walz take immediate action to address the issue, including sending weekly updates on anti-fraud efforts, freezing enrollment of high-risk providers for six months, verifying all current providers as "legitimate" or removing them, and sending a corrective action plan to CMS. Failure to comply will result in the US stopping its share of funding for these programs.
The CMS administrator pointed to two Minnesota Medicaid programs launched in recent years, highlighting dramatic spikes in costs. The Housing Stabilization Services program paid out over $100 million in 2024, while the Early Intensive Developmental and Behavioral Intervention program grew from $3 million in 2018 to nearly $400 million in 2023.
Oz accused Walz of going "all-in on identity politics," failing to take decisive action against the scammers. He also claimed that some scammers used stolen taxpayer money to buy luxury cars, overseas real estate, and offer kickbacks to parents who enrolled their kids at fake autism treatment centers.
The issue has already sparked a probe by the Treasury Department into how taxpayer dollars were allegedly diverted to al-Shabab. President Donald Trump recently announced actions to crack down on fraud schemes in Minnesota, citing it as a "hub of money laundering activity."
Walz's office remains silent on the matter, with Fox News Digital unable to secure a comment from the Governor's office. The situation highlights the serious consequences of corruption and the need for strong leadership in addressing these issues.
A staggering $1 billion is believed to have been stolen through a massive Medicaid fraud scheme carried out by "bad actors" within Minnesota's Somali community. Dr. Oz claims some of the funds may have even made its way to the terrorist group al-Shabab, sparking outrage among lawmakers and experts.
Oz demanded Walz take immediate action to address the issue, including sending weekly updates on anti-fraud efforts, freezing enrollment of high-risk providers for six months, verifying all current providers as "legitimate" or removing them, and sending a corrective action plan to CMS. Failure to comply will result in the US stopping its share of funding for these programs.
The CMS administrator pointed to two Minnesota Medicaid programs launched in recent years, highlighting dramatic spikes in costs. The Housing Stabilization Services program paid out over $100 million in 2024, while the Early Intensive Developmental and Behavioral Intervention program grew from $3 million in 2018 to nearly $400 million in 2023.
Oz accused Walz of going "all-in on identity politics," failing to take decisive action against the scammers. He also claimed that some scammers used stolen taxpayer money to buy luxury cars, overseas real estate, and offer kickbacks to parents who enrolled their kids at fake autism treatment centers.
The issue has already sparked a probe by the Treasury Department into how taxpayer dollars were allegedly diverted to al-Shabab. President Donald Trump recently announced actions to crack down on fraud schemes in Minnesota, citing it as a "hub of money laundering activity."
Walz's office remains silent on the matter, with Fox News Digital unable to secure a comment from the Governor's office. The situation highlights the serious consequences of corruption and the need for strong leadership in addressing these issues.