A political firestorm has erupted after Dr. Mehmet Oz, now serving in a federal administrative role, released a video alleging massive failures inside Minnesota’s Medicaid system. According to Oz, more than $1 billion in improper or fraudulent Medicaid payments occurred across several state-run programs, including Housing Stabilization Services and behavioral therapy reimbursements.

Oz claims state oversight under Governor Tim Walz was severely lacking and has demanded immediate corrective action. The Centers for Medicare & Medicaid Services (CMS) has now issued strict requirements for Minnesota—including freezing high-risk provider enrollment, verifying current providers, and submitting weekly fraud-control updates.

The controversy has triggered statewide debate and national scrutiny as investigators work to determine the extent of fraud, how it occurred, and who is responsible for the oversight breakdown. CMS warns that if Minnesota fails to meet federal requirements within 60 days, the state could lose federal funding for affected programs.


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