Dr Oz details ‘weaponization of fraud’ in Minnesota, estimates total Medicaid fraud to be $100 billion Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz described the “weaponization of fraud” in Minnesota, estimating that nationwide Medicaid fraud reaches approximately $100 billion. Oz highlighted issues such as a lack of program integrity focus, political patronage, and unusual increases in services like hospice and home healthcare in areas like Southern California and Los Angeles, suggesting organized criminal efforts are involved.

• CMS Administrator Dr. Mehmet Oz cited the “weaponization of fraud” as a major issue in Minnesota.
• He estimates total Medicaid fraud nationwide to be around $100 billion.
• Oz suggested that a lack of focus on program integrity and political patronage contribute to the fraud.
• He pointed to a “7-fold increase in hospice” in Southern California and a disproportionate amount of home healthcare spending in Los Angeles.
• Oz mentioned organized criminal efforts, including foreign nationals, involvement in healthcare fraud, citing examples of Russians and Cuban-run durable medical equipment schemes.
• He noted that the program auditing Medicaid was “gutted.”
• Minnesota Governor Tim Walz has expressed skepticism about the scale of fraud asserted by federal authorities but is working to address detected fraud.