Dr Mehmet Oz gives Tim Walz ‘60 days’ to address alleged Somali Medicaid fraud: ‘We’ll stop paying’

WASHINGTON, DC: Federal oversight official Dr Mehmet Oz has issued a public warning to Minnesota Governor Tim Walz, demanding swift action to address alleged problems within the state's Medicaid program.

Dr Oz has given Walz a 60-day ultimatum to “restore the integrity” of the program, failing which could trigger significant consequences.

The matter centers on concerns about misuse and fraud in Medicaid services, particularly involving Somali beneficiaries.

Dr Mehmet Oz issues 60-day Medicaid fraud ultimatum to Tim Walz

In a strongly worded statement, Dr Mehmet Oz, serving as the head of the federal agency Centers for Medicare & Medicaid Services (CMS), warned Governor Tim Walz that Minnesota must address serious allegations within its Medicaid program or face federal intervention.

Dr Oz posted on X that over “$1 billion” was stolen through what he described as an extensive Medicaid fraud operation involving “bad actors” from Minnesota’s Somali community.

He further said, “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 demanded that Walz “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, and send CMS a corrective action plan to prevent fraud in the future.”

He warned, “If we’re unsatisfied with the state’s plans or cooperation, we’ll stop paying the federal share of these programs.” 

The CMS administrator highlighted two Minnesota Medicaid programs introduced in recent years and emphasized the sharp increases in their expenditures.

He said, “In recent years, Minnesota Medicaid launched several new programs, including Housing Stabilization Services, which helped disabled homeless individuals, and Early Intensive Developmental and Behavioral Intervention, which reimbursed therapy costs for families with autistic children.”

Mehmet Oz links Minnesota Medicaid fraud to Somali networks

The concern raised by Dr Mehmet Oz centers on alleged abuses involving Somali Medicaid recipients in Minnesota.

“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.

Criticizing Governor Tim Walz for prioritizing identity politics, Oz stated, “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.” According to Oz, Minnesota officials previously reported the problem to CMS but failed to address it effectively.

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

President Donald Trump recently unveiled a series of measures targeting and investigating fraud schemes in Minnesota, describing the state as a “hub of money laundering activity,” and using this as justification for ending deportation protections for hundreds of Somali migrants.