Dr. Oz Warns Walz to Fix Somali Medicaid Fraud or Lose Federal Funding

Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz issued a blunt warning Friday to Minnesota Gov. Tim Walz clean up the state’s massive Somali-linked Medicaid fraud or lose federal funding entirely.

In a fiery statement posted to X, Dr. Oz revealed that more than $1 billion may have been looted from Medicaid by bad actors operating within Minnesota’s Somali community, with some of the stolen funds allegedly reaching the Islamic terrorist group al-Shabab.

“Our staff at CMS told me they’ve never seen anything like this in Medicaid,” Oz said. “Everyone from Gov. Tim Walz on down needs to be investigated, because they’ve been asleep at the wheel.”

Dr. Oz demanded that Minnesota take immediate corrective action, giving the state just 60 days to comply or face the consequences. The four required steps:

• Send weekly updates on anti-fraud enforcement efforts to CMS

• Freeze enrollment of high-risk providers for six months

• Verify every current provider as legitimate or remove them

• Submit a full corrective action plan to prevent future fraud

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

This isn’t just red tape the situation in Minnesota is a national security threat. According to Dr. Oz, fraudsters used taxpayer dollars to buy luxury cars, overseas real estate, and even offered kickbacks to parents enrolling children in fake autism centers. Some of that money, Oz alleges, made its way to al-Shabab, a Somali terrorist organization with direct ties to global jihadist networks.

Two Minnesota programs both launched under Gov. Walz’s administration raised massive red flags:

• Housing Stabilization Services, initially projected to cost just $2.6 million per year, ballooned to over $100 million in 2024

• Early Intensive Developmental and Behavioral Intervention, which cost $3 million in 2018, exploded to nearly $400 million by 2023

And where was the Walz administration during all of this? “Why didn’t Walz stop them?” Oz asked. “That’s simple: because he went all-in on identity politics.”

Despite prior warnings, state officials failed to act, prompting CMS to intervene directly shutting down the housing program and freezing provider enrollments in several fraud-ridden services.

Oz made it clear enough is enough. “Either fix this in 60 days, or start looking under your couch for spare change,” Oz said. “We’re done footing the bill for your incompetence.”

President Donald Trump has already taken notice. He recently announced a new crackdown targeting fraud in Minnesota, which he called a “hub of money laundering activity”, and used the scandal to justify terminating deportation protections for hundreds of Somali migrants.

Treasury Secretary Scott Bessent confirmed this week that a new federal investigation is now underway to uncover how U.S. taxpayer dollars may have been funneled to al-Shabab.

This is what happens when progressive leaders prioritize virtue-signaling over vigilance and it’s the American taxpayer who gets stuck with the bill.

Dr. Oz, backed by the Trump administration, is sending a message: protect American resources, protect national security or get out of the way.

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