07.12.2025 22:45
The Medicaid program, which covers healthcare costs for low-income families in the United States, has come to the forefront of national news due to a major corruption allegation that erupted in Minnesota. Dr. Mehmet Öz, appointed by President Donald Trump to head the Centers for Medicare & Medicaid Services, issued a warning to the state government, stating, "We can cut federal funding."
The Medicaid program, critical for low-income families in the U.S., has entered a major crisis due to allegations of millions of dollars in fraud uncovered in Minnesota. Following the scandal, Dr. Mehmet Öz, appointed by Trump to head CMS, sent a stern warning to the state administration, stating, "If the irregularities are not resolved, federal funds may be cut off."
1 BILLION DOLLAR FRAUD ALLEGATION
According to Fox News, Dr. Öz claimed that some Somali-origin groups in Minnesota misappropriated over 1 billion dollars in public funds. He even alleged that some of this money may have reached the terrorist organization Al-Shabaab in Somalia.
Dr. Öz emphasized the magnitude of the fraud, stating, "Our CMS employees have never seen a case like this before."
60-DAY ULTIMATUM
In an official warning sent to Minnesota Governor Tim Walz, Dr. Öz gave the state a 60-day deadline and presented a four-item list of conditions:
Öz requested weekly reports on fraud prevention, a ban on new registrations for high-risk providers for 6 months, re-verification or removal of all existing providers, and the submission of a new "corrective action plan" to CMS.
FUNDS WILL BE STOPPED IF FRAUD IS NOT PREVENTED
Öz clearly stated that if these conditions are not met, federal Medicaid payments will be halted. He issued a clear warning to Minnesota Governor Tim Walz: "If the fraud is not cleaned up, we may cut federal Medicaid funds."
SUSPICIOUS SPENDING INCREASES RAISE CONCERNS
Dr. Öz highlighted the scale of the irregularities by citing abnormal spending surges in two programs:
Housing stability services: 2.6 million dollar target, 100 million dollars spent
Autism treatment program: 3 million dollars, approximately 400 million dollars
According to Öz, some of these funds were used for luxury vehicle purchases, overseas real estate investments, and bribes through fake autism centers.