Centers for Medicare and Medicaid Services (CMS) Director Dr. Mehmet Oz has identified five states—Minnesota, California, Florida, New York, and Maine—as exhibiting a pattern of fraud and waste requiring urgent federal action. In an interview with Fox News Digital, Oz stated that these states are currently under investigation for “durable medical equipment” scams, with additional jurisdictions likely to follow as the scope expands nationwide.

Oz emphasized that Minnesota’s $250 million “Feeding Our Future” scheme serves as a critical example of systemic fraud. He noted concerns about foreign involvement in South Florida, where Cuban government ties allegedly facilitated twice the volume of wheelchair and knee brace suppliers compared to McDonald’s locations. The CMS director also highlighted that Medicaid programs across all 50 states remain vulnerable to similar schemes, including those linked to the Somali community in Minnesota through recent social media disclosures.

The federal anti-fraud task force led by Vice President JD Vance has intensified scrutiny following CMS’s decision last month to defer over $260 million in Medicaid funding to Minnesota after audits revealed billing irregularities. Oz clarified that of the $91 million currently withheld, $76 million relates to 14 service categories deemed “highly vulnerable” to fraud. He asserted that CMS will not pay “bad bills” without verified documentation and will continue using all available tools to protect Medicaid program integrity.

Oz reiterated that Minnesota’s recent incidents—such as the “Learing Center” controversy and Department of Justice actions involving childcare centers—represent a recurring pattern rather than isolated failures, underscoring the federal government’s commitment to addressing systemic fraud in healthcare programs.