Centers for Medicare and Medicaid Services leader Dr. Mehmet Oz said Tuesday that federal payments to 14 Minnesota programs would be put on hold as the federal agency conducts fraud investigations.
The announcement came nearly one month after Oz demanded Governor Tim Walz and state officials put together a plan to address the widespread fraud suspected to be impacting the 14 state run programs, "Our message to Walz is clear: either fix this in 60 days or start looking under your couch for spare change, because we are done footing the bill for your incompetence," Oz said at the time.
In a video released Tuesday, Oz said the administration submitted a deeply insufficient" corrective plan to address ongoing fraud.
"If the state cannot get a hold on this fraud, as we find more, we intend to withhold more payments moving forward until the state cleans up its act," Oz said. "This ensures that Minnesotans who are truly in need and eligible for benefits can access Medicaid services."
In a letter, Oz detailed investigations that have resulted in federal partners down identifying, "widespread fraud, waste, and abuse."
"These investigations have revealed schemes involving billing for services not rendered, services billed at levels not supported by documentation, and exploitation of vulnerable Medicaid beneficiaries for financial gain. Federal law enforcement has identified complex fraud schemes involving networks of providers operating across multiple high-risk service categories, including services delivered through Minnesota's home - and community-based services system," Oz wrote.
According to Oz, the 14 Minnesota programs make-up $3.75 billion annually in federal and state taxpayer resources.
The Trump Administration announced Tuesday it also plans to halt billions of dollars in federal funding for social services programs in Minnesota as well as four other states due to ongoing fraud issues.
That freeze would impact Temporary Assistance for Needy Families program, the Child Care Development Fund, and money for social services grants that largely benefit children.