Vice President Vance and Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz hold an event on fraud while promoting their “war on fraud” agenda, saying some Medicaid funds could be withheld from Minnesota in the process.
MINNEAPOLIS (FOX 9) – Some Medicaid funding in Minnesota will be paused as the Trump administration addresses concerns over fraud, according to an announcement by Vice President J.D. Vance, who is set to spearhead a national “war on fraud.”
President Trump spoke on fraud in Minnesota during his State of the Union speech Tuesday night, and previously cited it as a reason for the surge of immigration enforcement in the state.
JD Vance, Dr. Oz announce pause in MN Medicaid services
Minnesota lawmakers are struggling to agree on fraud prevention measures. Democrats proposed 13 new bills focused on oversight and prevention. Republicans want an independent Office of Inspector General and transparency on fraud reports.
What they’re saying:
The Vice President appeared at the podium with Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz to announce the temporary pause in federal funding.
Oz said the federal government will delay $259.5 million in Medicaid funding to Minnesota.
“This is not a problem with the people of Minnesota, it’s a problem with the leadership of Minnesota and other states who do not take Medicaid preservation seriously,” Oz said.
Oz said CMS will solicit tips and suggestions from citizens on ways to “crush fraud.”
What’s next:
Oz said Gov. Walz has 60 days to respond, adding that concerned health care providers and Medicaid beneficiaries should contact the governor’s office.
The CMS will crack down on fraud in Medicare, Oz said. Any new Medicare enrollments for suppliers of durable medical equipment, prosthetics, orthotics or other supplies used to treat chronic conditions or assist in injury recovery, will be blocked for six months.
Fraud in Minnesota
Dig deeper:
DFL lawmakers and Minnesota Attorney General Kieth Ellison have shared their own plans for fraud prevention responses since the Feeding Our Future scandal in 2022. They also introduced a revised anti-fraud bill this week.
READ MORE: Feeding Our Future: 79th person charged
However, a new report looking at how Minnesota handled fraud found vulnerabilities dating back to the 1970s and inconsistent messaging from Department of Human Services leadership that encouraged “compassion over compliance” when it came to fraud prevention.
READ MORE: MN fraud report: Former workers say DHS put ‘compassion over compliance’ for fraud prevention
The report also raises concerns about a “too trusting mindset” within the state and a “system biased toward facilitating payments — rather than safeguarding funds” which officials say “contributed to creating opportunities for exploitation.”
The Source: This story uses information taken from the Associated Press statements given by Vice President J.D. Vance.