Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz confirmed on Tuesday that certain programs in Minnesota will be audited amid allegations of fraud in the state.
Oz, a physician and former television personality known for years as “Dr. Oz,” told Fox News’s Laura Ingraham that his agency sent a letter to Minnesota Gov. Tim Walz informing him that multiple programs flagged as problematic will be audited and that funds may be clawed back from the state.
“What we have learned so far in Minnesota is just the tip of the iceberg—perhaps the largest Medicaid scam ever, taking place throughout the state in many different fashions,” Oz said, adding that $500 million or more in funds is at risk.
“We are not even sure how it was billed, where it went,” he said. An X post by the White House’s Rapid Response account that reposted Oz’s interview with Fox further stated that Oz has “formally” notified Walz, a Democrat, that all “Medicaid billing in Minnesota will be audited.”
The Epoch Times contacted Walz’s office for comment Wednesday.
Walz has been critical of the Trump administration and Republicans as the probe of alleged fraud in his state continues to widen. Earlier this week, he dropped his bid for a third term as governor.
Speaking in a news conference, Walz said he believes Minnesota is “under assault like no other time in our state’s history because of a petty, vile administration that doesn’t care about the well-being of Minnesotans.”
“I don’t think any governor in history has had to fight a war against the federal government every single day,” said Walz, the Democratic vice presidential candidate in the 2024 election.
The governor told reporters on Tuesday that he doesn’t know what his future holds for him politically. He said he also expects to be tied up for the next year with trying to fight off the Trump administration’s targeting of Minnesota, including a surge of federal officers into the state.
Less than four months after announcing his reelection campaign, Walz said Monday that he cannot serve full-time as governor while also being a candidate to keep his job.
“So I’ve decided to step out of the race and let others worry about the election while I focus on the work.”
In response, President Donald Trump stated in a social media post that Walz will “possibly leave office” before his term ends and alleged that the governor was caught “redhanded” in the fraud scandal.
Weeks before dropping out, Walz said in December that his state has taken efforts to stop fraud, saying that over the past several years, the state has “made systematic changes to state government.”
“Detecting fraud is resource intensive and time consuming—especially when it comes to the federal Medicaid programs that have a complex interplay between private insurance companies and federal, state and county governments,” the statement said.
The Department of Homeland Security (DHS) confirmed on Tuesday that it launched an operation in Minnesota, expanding on other federal efforts to “keep Americans safe and eradicate fraud.”
“The largest DHS operation ever is happening right now in Minnesota,” it wrote, in part.
In late December, Deputy Secretary of Health and Human Services Jim O’Neill wrote that the government froze child care payments to Minnesota amid the fraud scandal, responding to a viral video from a journalist, Nick Shirley, who recorded an empty daycare center in the state and alleged fraudulent activity.
The Associated Press contributed to this report.
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