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Medicaid Fraud Warning: Minnesota Faces $1 Billion Loss

12/7/2025

Summary

Story summary

CMS Administrator Mehmet Oz warned Minnesota Governor Tim Walz that the state may lose federal Medicaid funding due to significant fraud issues.
Oz stated that over $1 billion was stolen through a scheme involving Minnesota’s Somali community, with potential links to the terrorist group al-Shabab.
He demanded corrective actions within 60 days, including freezing high-risk provider enrollments and verifying current providers.
President Trump has initiated investigations into fraud in Minnesota, calling it a "hub of money laundering."
Walz's office has not yet commented on these allegations.

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Story summary

CMS Administrator Mehmet Oz warned Minnesota Governor Tim Walz that the state may lose federal Medicaid funding due to significant fraud issues.
Oz stated that over $1 billion was stolen through a scheme involving Minnesota’s Somali community, with potential links to the terrorist group al-Shabab.
He demanded corrective actions within 60 days, including freezing high-risk provider enrollments and verifying current providers.
President Trump has initiated investigations into fraud in Minnesota, calling it a "hub of money laundering."
Walz's office has not yet commented on these allegations.