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Medicaid Will ‘Claw Back’ Fraud Funds From Minnesota: Agency Head

CMS plans to recover over $500 million lost to fraud in Minnesota Medicaid, auditing 14 vulnerable programs and imposing financial penalties to protect taxpayer funds.

  • On Jan. 6, CMS administrator Dr. Mehmet Oz announced audits of all 14 flagged Medicaid programs in Minnesota and said his agency will claw back at least $500 million in federal funds.
  • Prosecutors charged dozens in schemes billing for unrendered child meals, autism therapy, and housing assistance, with many defendants from Minnesota's Somali community and some convictions secured.
  • Federal steps include cutting child care payments and tightening verification after charges over billing schemes, with more than 2,000 Department of Homeland Security agents deployed and federal funding frozen to Minnesota.
  • Federal letters outlining penalties and the governor's refusal to resign follow Minnesota's late submission of a 'corrective action plan' by the end of 2025, officials said.
  • Observers noted that signing up for Medicaid does not automatically give voting rights, and Oz recently learned of the 1993 National Voter Registration Act, later saying `you also get them registered to vote`.
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Medicaid Will 'Claw Back' Fraud Funds From Minnesota: Agency Head

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Mediaite broke the news in United States on Tuesday, January 6, 2026.
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