The Trump administration said it will escalate its push to crack down on fraud in state Medicaid programs.
Axios reported that Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz said Tuesday that the agency is "getting strict" on fraud in both Medicaid and Medicare and suggested additional states could face scrutiny.
Minnesota has filed a federal lawsuit challenging a decision to freeze $259 million in funding.
"What happened in Minnesota, we're seeing in California, we're seeing it in Maine ... New York and we've seen problems in Florida as well," Oz said.
Minnesota sued the administration in federal court Monday, arguing the funding freeze violates administrative procedure and Congress' authority over spending.
Speaking on the sidelines of an event on value-based care, Oz said he is reviewing Minnesota's legal claims.
"I'm interested to see what specifics they have. It's a difficult challenge when a state doesn't seem to have taken fraud seriously, and we have tons of evidence that that's the case, including whistleblowers on the ground," he said.
Oz said he has "an obligation to the federal taxpayer, so I intend to fulfill those obligations."
Vice President JD Vance joined Oz last week in announcing the halt to Minnesota's Medicaid funds, saying the money would remain frozen until the state takes steps to address fraud concerns.
Later Tuesday, Oz said he sent a letter to New York Gov. Kathy Hochul regarding that state's Medicaid fraud detection efforts, giving New York 30 days to respond before CMS takes corrective action.
The funding freeze represents about 7% of Minnesota's quarterly Medicaid allocation and could force significant service reductions, according to state officials.
Minnesota Attorney General Keith Ellison criticized the move.
"[President Donald] Trump's attempts to look like he's fighting fraud only punish the people and families who most need the high-quality, affordable healthcare that all Minnesotans deserve," Ellison said in a statement.
The dispute sets up a legal and political fight over the administration's authority to withhold Medicaid funds as it expands oversight of state programs.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
© 2026 Newsmax. All rights reserved.