Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz issued a 60-day ultimatum to Democratic Minnesota Gov. Tim Walz on Sunday, threatening to cut federal funding over more than $1 billion in alleged Medicaid fraud.
“This is a clear dereliction of duty,” Oz wrote in a statement posted to X. “Everyone from Gov. Tim Walz on down needs to be investigated, because they’ve been asleep at the wheel.”
The scheme involved bad actors exploiting two state programs. Housing Stabilization Services assisted disabled homeless individuals while Early Intensive Developmental and Behavioral Intervention reimbursed therapy costs for families with autistic children. (RELATED: Tim Walz Admits Welfare State ‘Attracts Criminals,’ Dodges Blame For Fraud Problem)
You’ve probably heard the news by now: Minnesota fraudsters stole over $1 billion from Medicaid. And you deserve an explanation.
Our staff at CMS told me they’ve never seen anything like this in Medicaid — and everyone from Gov. Tim Walz on down needs to be investigated, because… pic.twitter.com/MFUoYYJoEa
— DrOzCMS (@DrOzCMS) December 5, 2025
The housing program was designed to cost $2.6 million annually but paid out over $100 million last year. The autism therapy program exploded from $3 million in 2018 to nearly $400 million in 2023.
Oz said scammers used stolen taxpayer dollars to buy luxury cars, purchase overseas real estate and offer kickbacks to parents who enrolled children at fake treatment centers. Some funds may have reached the Somalian terrorist group Al-Shabaab, according to his statement.
CMS has already shut down the housing program and frozen provider enrollment in several abused programs. Oz now demands Minnesota provide weekly fraud updates, freeze high-risk provider enrollment for six months, verify all current providers and submit a corrective action plan.
“The message to Walz is clear: either fix this in 60 days or start looking under your couch for spare change, because we’re done footing the bill for your incompetence,” Oz wrote.
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