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Dr. Oz Uncovers a Possible $400M Fraud in Minnesota

Federal audits target nearly 400 businesses billing $380 million to Medicaid from one St. Paul building amid allegations of fraud and systemic oversight failures.

  • Last week, CMS administrator Mehmet Oz revealed that roughly 400 Medicaid-billing businesses were started in the Griggs Midway building, St. Paul, billing approximately $380 million to Medicaid.
  • Investigators allege the schemes involved overbilling, false records, identity theft, and phantom claims dating back to 2013, with federal officials reporting fraudulent hospice payments including fake invoices and enrolling non-terminal patients.
  • Oz said authorities had not been watching the Griggs Midway building, St. Paul, and warned of a long-standing cover-up by the Minnesota Department of Human Services.
  • Last week, CMS said it is auditing Minnesota, freezing enrolment, and deferring payments for 14 programmes costing $3.7 billion annually, following requests from House committee leaders,
  • California Governor Gavin Newsom pushed back by saying Minnesota has recently attracted scrutiny for fraud, adding Oz was taking a victory lap as California cracked down years ago with a 2021 hospice licensing law.
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Independent Sentinel broke the news in on Friday, January 23, 2026.
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