Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz on Tuesday announced a nationwide initiative to combat Medicaid fraud, mandating that all 50 states submit plans within 30 days to revalidate their program providers.
Speaking at a Politico Health Care Summit, Oz warned that the federal government would audit states “more aggressively” if they do not prioritize the request. The mandate represents an escalation of the Trump administration’s broader “war on fraud,” a campaign led by Vice President JD Vance that has become a central theme for Republicans ahead of the November midterm elections.
“I love Medicaid… and when you love something, you protect it. You don’t let it get defrauded,” said Oz, a physician and former television host who now oversees the nation’s largest health insurance programs.
The nationwide order follows a series of targeted actions against specific states. CMS has already issued letters alleging fraud to California, Florida, Maine, and New York. Last month, the agency approved an anti-fraud plan from Minnesota after previously threatening the state with a $2 billion cut to future Medicaid payments for noncompliance.
However, the administration’s aggressive stance has faced recent scrutiny over data accuracy. Earlier this month, CMS admitted to a significant error in its analysis of New York’s Medicaid program, where it had grossly overstated the number of enrollees receiving personal care services as 5 million, when the actual figure was approximately 450,000.
The fraud-busting effort arrives amid a sharp political divide over healthcare spending. Democrats have criticized the administration for enacting more than $1 trillion in Medicaid cuts last year and have pointed to rising premiums as a key campaign issue.
Representative Pramila Jayapal, a Democrat on the House Budget Committee, rejected the administration’s premise at the summit, arguing that “taking away core benefits” under the guise of cracking down on fraud is not what the public wants.
Oz also used the summit to defend upcoming Medicaid work requirements, describing them as a “beautiful tool” to encourage employment among able-bodied Americans. Additionally, he dismissed concerns regarding a five percent decline in Obamacare enrollment, which dropped by 1.2 million signups this year following the expiration of enhanced subsidies in December.
While Democrats suggest the loss of subsidies has left millions uninsured, Oz characterized the criticism as “political football,” asserting that the market did not see a “mass departure” from the system.