Washington, D.C. – Newly appointed CMS Administrator Dr. Mehmet Oz dropped a bombshell on April 18, 2025, exposing widespread fraud in America’s healthcare system during a Fox News interview. Oz, tasked with overseeing Medicare and Medicaid, outlined staggering abuses—ranging from fraudulent enrollments to misused funds—and announced a new “war room” at CMS to tackle the issue in real time.
Oz revealed that 230,000 Americans were unknowingly enrolled in Affordable Care Act plans by brokers chasing commissions, a practice CMS identified earlier this month. He also pointed to “tens of millions” in Medicaid spending on undocumented immigrants in California, a policy costing $3.1 billion annually, with the federal government footing 60% of the bill. Additionally, Oz highlighted a $1 billion loss from “dual-state eligible” patients enrolled in multiple states, echoing a 2023 GAO report on duplicate payments. “We’re paying for services you’re not getting because you don’t live in three states at once,” he said.
The allegations grew more contentious as Oz criticized Medicaid funds being diverted to non-medical perks, including childcare for public labor unions, housekeeping, student loan repayments, and DEI programs. While states like California have spent $100 million on social services via Medicaid waivers, direct evidence of union-specific childcare or housekeeping is scarce. A 2023 North Carolina pilot did use Medicaid to repay healthcare workers’ loans, costing $50 million, but Oz’s claim about DEI funding remains unsubstantiated.
Oz’s solution—a CMS “war room” to catch fraud before funds are disbursed—aims to centralize enforcement using advanced analytics. Announced on April 12, this initiative aligns with the Trump administration’s “Make America Healthy Again” agenda, though specifics on its operations are unclear. On X, reactions are mixed:
@VigilantFox hailed it as a “reckoning,” while others, like
@JasonResendez, warned it could justify deeper Medicaid cuts, potentially harming vulnerable groups.
Critics argue Oz’s focus on fraud, while valid, oversimplifies systemic issues. California’s coverage of undocumented immigrants saves $1.5 billion in emergency costs annually, and non-medical spending on social services has reduced long-term Medicaid expenses by 10%, per a 2024 study. Democrats like Sen. Elizabeth Warren have accused Oz of ignoring larger fraud, such as $83 billion in Medicare Advantage overpayments. As Oz’s war room takes shape, its impact on healthcare integrity—and access—remains a critical question.
