Vance: Admin Halting Some Medicaid Funds to Minnesota Due to Fraud Scandal
The admin wants “to ensure that the state of Minnesota takes its obligation seriously to be good stewards of the American people’s tax money.”
Vice President JD Vance and Dr. Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services, announced that the Trump administration will temporarily pause some Medicaid funds to Minnesota due to fraud concerns.
We’re announcing today that we have decided to temporarily halt certain amounts of Medicaid funding that are going to the state of Minnesota in order to ensure that the state of Minnesota takes its obligation seriously to be good stewards of the American people’s tax money.
Now what is this going to mean? What this means is that, first of all, the providers on the ground in Minnesota have actually already been paid. The state has paid those providers the money.
What we’re doing is we are stopping the federal payments that will go to the state government until the state government takes its obligations seriously to stop the fraud that’s being perpetrated against the American taxpayer.
🚨 @VP: "We have decided to temporarily halt certain amounts of Medicaid funding that are going to the state of Minnesota in order to ensure that the state of Minnesota takes its obligation seriously to be good stewards of the American people's tax money." pic.twitter.com/XD0JMA5p3w
— Rapid Response 47 (@RapidResponse47) February 25, 2026
The accusations of Medicaid fraud began in November 2025, opening a chest of possible fraud in Minnesota in other areas.
One prosecutor believes Medicaid fraud could top $9 billion within 14 services in Minnesota.
First Assistant U.S. Attorney Joe Thompson also said the “fraud in Minnesota outpaces that of other states.”
Dr. Oz provided more details:
I’m proud to announce the largest the largest fraud initiative, anti fraud effort of its kind in CMS history.
Now why is this action necessary? Last night in the State of the Union Address, the President spoke about the affordability issues that we have improved dramatically in this administration. But let’s put some numbers on health care.
The average family puts about $27,000 into health care a year. They only pay $7,000 themselves, which is a lot, but there’s an extra $20,000 invested for them. This is not a reasonable amount of money to spend. We have got to bend that curve downwards. It’s unpredictable, as well, when you have to make these expenses. And the fraud that we’re experiencing in America is making this already dangerous problem much worse.
So we’re going to fix these issues. The President last night spoke about the need for price transparency. That’s going to help by making people more aware of what they’re paying. It’s also going to help us at CMS figure out what you should be paying and identifying fraud.
To that note, the President announced last night that he’s appointing our vice president to lead the war on health care fraud, a wise choice. Your passion for this will make a huge difference.
This is not about the money by itself. This is about people’s lives and our culture, our shared values that have allowed these beautiful programs, Medicare, Medicaid, to survive brilliantly for 60 years.
We believe, listen carefully, we are spending $300 billion a year in health care in this country for fraudulent, abusive, or wasteful purposes.
$300 billion. Let’s put that in perspective. If we could reduce fraud by 5%, which is that $300 billion, we would take the trust fund that’s going to take care of all of us as we get older, and we would allow it not to expire in five to six years. We would double its life expectancy. That’s massively important if you’re going to trust the social safety net to be there for you. You deserve that social safety net. It’s there. It’s created. We’re not going to let fraudsters steal it from you.
.@DrOzCMS: "I'm proud to announce the largest anti-fraud effort of its kind in CMS history… We're not going to let fraudsters steal it from you." https://t.co/AjAoc9osmh pic.twitter.com/jtAOpFKEDf
— Rapid Response 47 (@RapidResponse47) February 25, 2026
Oz also detailed some of the fraud discovered during the investigations.
“There is a fraud scheme in Minnesota where criminals, soon to be criminals, pay moms $1,000 roughly, in order to enroll their children as being autistic, falsely, dishonestly claiming their children are autistic,” said Oz. “They then bill Medicaid. It has already happened, millions of dollars for services that were never rendered, never delivered by a qualified staff member.”
Yes, they’re depriving children with autism of the help they need.
“There’s one Behavioral Health Organization, Mr. Vice President in Minnesota, where they received, delivering a half million dollars in Medicaid payments,” continued Oz. “But the top Biller, the top biller submitted 450 days where they claim they’re working more than 24 hours a day.”
How does someone work more than 24 hours a day?
“The kid pays the price for the rest of their life,” added Oz.
.@DrOzCMS details just a fraction of the fraud in Minnesota: One scheme involved criminals paying moms $1,000 to enroll their children — falsely — as autistic, then billed Medicaid millions of dollars for services that were never rendered. https://t.co/AjAoc9osmh pic.twitter.com/7AKMGSKwPj
— Rapid Response 47 (@RapidResponse47) February 25, 2026
Oz said that the administration has given Minnesota Gov. Tim Walz 60 days to respond.
Oz also warned that the administration will release information about fraud in other states:
We did what any honest and patient focused agency would do. We have notified the state and that we will give them the money, but we’re going to hold it and only release it after they propose an act on a comprehensive corrective action plan to solve the problem.
If Minnesota fails to clean up the systems, the state will rack up a billion dollars of deferred payments this year. Governor Walz has 60 days, 60 days, sir, to respond to our letter.
And if providers and beneficiaries are worried about getting their money and services, please call your governor. These are services the governor has already paid for. We are just not reimbursing the state.
To make it clear, there is a rainy day fund in Minnesota, so we are very confident that people will not be hurt in 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.
Any delay in services is going to be laid at the seat of Governor Walz. I believe he will take this seriously. They’re not the only state that’s floundering. We have more announcements with other states coming soon.
.@DrOzCMS: "If Minnesota fails to clean up the systems, the state will rack up $1 billion of deferred payments this year. @GovTimWalz has 60 days to respond… We have more announcements of other states coming soon." https://t.co/AjAoc9osmh pic.twitter.com/nw18bsv64z
— Rapid Response 47 (@RapidResponse47) February 25, 2026
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Comments
Some Commassar Judge will keep those monies flowing
Federal judge [fill in the blank] orders the continuation of corruption in Minnesota.
“What this means is that, first of all, the providers on the ground in Minnesota have actually already been paid. The state has paid those providers the money.”
Uh, now WTH does that mean?? It sounds like a capitulation to recover this money or prosecute those in government who facilitated this fraud via malfeasance, or the pirates who did the actual defrauding.
And instead, you sent a StRoNgLy WoRdEd LeTtEr to tampon tim?
Is that what it sounds like to you? And if true, you guys are going the right way for beat down in the midterms IF NO ONE GOES TO PRISON FOR THIS FRAUD.
PUT. PEOPLE. IN. PRISON. NOW.
It means exactly what it says. The state pays providers, and then the federal government reimburses the state. Now the administration is saying that we’ve discovered fraud in your state, and you are turning a blind eye and allowing it to happen, so we’re going to hold up your reimbursements. Honest providers (which is the vast majority) don’t have to worry; they’ve already been paid for past services, and the state has sufficient reserves to pay for future services for a reasonable time, so you will be continue to be paid on time and in full. This action affects only the state government. Its reimbursements will eventually be paid, but only after it has shown us to our satisfaction what it’s going to do about the fraud.
Where is the REAL Justice Milhouse! Who ever this Milhouse its they are CLEARLY an imposter. The real Milhouse is nearly this reasonable! 😜😜
You’re not helping. You contributed nothing new. You merely regurgitated the impotent pablum of from original article: “Golly. Them Minnasotees stole all that money. Whatever shall we do? Oh, here’s a strongly worded letter. Yuk yuk.”
My stellar analysis remains: the republicans are going the right way for beat down in the midterms IF NO ONE GOES TO PRISON FOR THIS FRAUD.
PUT. PEOPLE. IN. PRISON. NOW.
There he is! 😂😂 Good to
See you back, Justice Milhouse!! 😘
No wait…another imposter 🤦🏼♂️😂
I take that all back LB1901! Been a long day at work!! 🫣🤔🤦🏼♂️😁
You asked what it means, and I explained it. It’s not pablum, it’s a direct sanction on the state. We owe you this money, but you’re not getting it until you come up with a plan to stop this fraud.
A plan to stop the fraud will be expected to include whatever steps are possible to prosecute the fraudsters and recover whatever little might be recoverable.
As for prosecuting officials, that would require evidence that they knew about this, and that’s unlikely to emerge. The feds certainly have no such evidence, or they’d have made their own arrests.
We probably lose as money through the many loopholes in Medicaid for those needing long term care. It has been turned into an inheritance protection program, and full employment for attorneys that know how to game the system.
Maybe, but those people are acting honestly. Under current law they are entitled to what they’re receiving. This is about people who are receiving money they’re not entitled to.
For instance, specifically about the autism scheme. There are many people who are making good money from this system by actually providing services for kids whose diagnosis might be dubious. The services are genuinely being rendered, the kids are probably benefiting, it’s just that they may not actually need them. But this isn’t about them, it’s about people who claim to provide services but never actually do. They’re getting money for nothing. And until that‘s cleaned up there’s no point in going after the others.
A government dependency inheritance protection program.
Honest providers (which is the vast majority) don’t have to worry;
As President Trump has said,
“You are crazy”
Heads have got to fly, they can not be allowed to not pay the price
You’ve already long established that you are crazy. If you deny that the vast majority of medical providers are honest and deserve to be paid, then you’re off in cloud cuckoo land. Go tell your doctor that she’s a fraud and doesn’t deserve to be paid.
We are talking Minnesota here
And you sir are #1 crazy and THAT is certifiably established
It makes no difference which state it is. In every state, the vast majority of medical providers are actually treating patients, and being paid for it legally. Only a complete idiot would think otherwise. Minnesota has 5.7 million people, and almost all of those people have doctors whom they visit occasionally, some more than occasionally. How many doctors (including specialists) is that? And how many fake doctors do you think there are?
The same number of fake somali autistic centers that exist in Minnesota? Because someone has to be certifying those non-existent children as being autistic for the fake somali autistic centers to be collecting payments for non-existent services rendered.
So whose signature is on those papers? Either fake doctors or real doctors that were collecting money under the table for their signatures.
Right, and how many do you think that is? It must certainly be a small minority of all medical providers in the state. The number of legitimate providers to look after 5.7 million people can’t possibly fail to be far greater than that of the crooked or fake providers involved in this.
And just like that…Justice Milhouse is back! 🤣
Idiot, can Democrats not read–
gonzotx said–
Honest providers (which is the vast majority)
And you blithered–
If you deny that the vast majority of medical providers are honest and deserve to be paid, then you’re off in cloud cuckoo land.
in response to something that exists only in your diseased mind.
Weren’t you leaving? Didn’t you make a whiny post about how you’d not be able to post because you had some special thing you were doing and there’d be no service or some such crap?
No, I wrote that, you blithering dishonest idiot.
And yes, your vicious poison is making this an unpleasant experience, but I’m not leaving because of you. I may soon be leaving for a while, because I’ll be in a place with little internet access, and what little I have I won’t want to waste on this place. But it’s not certain yet, and if it does happen at least I won’t be out in the middle of nowhere in the dead of winter. It’s not an opportunity I can say no to, but I wasn’t looking forward to the cold and snow.
harmeet for potus after trump
She’s great, but she’s not a natural born citizen.
Also, she has nothing to do with this story.
She’s not great barely on the plus side
She was a no show in Az
Just ask Kari…
The irony in this is that elderly patients who have limited fixed incomes (low end of social security) are denied benefits by the bureaucracy that runs Medicaid while dead beat druggies annd bums of anll types get approved. It appears that billions also get siphoned off in fraud.
I know the stories of several deserving low income honest people who were denied. In my opinion the system is managed to deny needy working class folks and reward bums and fraudsters
Social Security is supposed to be a supplement to savings, pension, 401K, IRA and not the sole income for a retiree. Generally it is described as one leg of the three legged stool. People have to be responsible for their own retirement planning and then disciplined enough to put the plan into motion and keep doing slowly but surely throughout their working life. If they fall short then the primary responsibility fall onto their Family then their faith network/congregation to assist them. Unfortunately many have not planned much less actually saved and there’s gonna be a growing number of elderly with insufficient funds to maintain their preferred lifestyle. Especially so for those who got a divorce. I suspect were gonna be inundated with sob stories about Boomers, particularly Boomer Females who didn’t save enough b/c they didn’t/wouldn’t delay gratification. Women generally only save about 40% of what Men do for retirement. Some of that is biological reality for time out of workforce to have/raise young children but not all. A 25 year old who has three children each two years apart and stays home till the youngest starts school has only missed ten years. That leaves another 47 years to be in the workforce from 18-65 out of the 57 possible. 47 years is a lot of time to save, especially when we consider the current SSA tax rate of 12.4% didn’t go into effect until 1990 which left more disposable income available to save for Silent Gen and Boomers.
Qualification for Medicaid while also a retiree drawing SSA and Medicare is set by each State. Usually it is based on ‘available assets’. In Alabama it is $2K on the 1st of the month. If you have any amount over that you ain’t eligible which makes sense b/c Medicaid is supposed to be for those in true poverty not a secondary govt program to top up SSA/Medicare for those of modest means.
Your information is probably correct as far as the program is designed. However, in practice Medicaid is available to those who refuse to work, abuse drugs or are here illegally.
The two cases I mentioned were an elderly Filipino man (American citizen for over 80 years) who was denied because his SS payments were less than $100 per month over the limit. I know his story because his daughter works at the lab which does my annual blood work. He has serious medical issues requiring 24-hour care. Yes, she and her family do care for him in their home but are denied actual nursing type care which they just can’t afford it.
The other instance was an elderly lady that worked as time allowed as she raised 5 children.
She was fully independent until well into her 80’s. When she finally needed full time care she was denied because her SS payments were less than $100 per month over the limit. Fortunately, her family was able to provide for the very expensive end of life care required.
I think that Medicaid should indeed be means tested and the individual should to all they can to provide for their own care. However, if we are going to have a taxpayer funded safety net it should not be designed to exclude working class people.
Basically, the system we have is much like DEI. In universities and corporations, they exclude qualified white males and recruit less or unqualified minorities.
In Medicaid they exclude retired working-class people and include bums, druggies and illegals even if they have just arrived in this country (yes I know the Dems will say illegals aren’t on the program but anyone with a brain knows that is BS).
The money collected by our government should be expended by on need but also taking care of those low-income people who were productive members of our society not just the dregs. If we are going to spend billions on Medicaid, we should not exclude those who just made life decisions to raise families and work for decades in favor of those who have never or seldom worked or have just arrived in this country looking for a free lunch.
Action blocked by #Resistance Federal Judge in 5 …. 4 ….. 3….
Such a minuscule amount, makes you want to laugh, if it wasnt so Fod awful sad….
“Vance Announces New Phase of Fraud Investigations, Withholds $259 Million in Medicaid Funds From Minnesota”
One way to tackle the issue is make clear unambiguous lines for eligibility. Simplest would be to limit SSA # to Citizens. Everyone else is required to get a Tax ID#. Then require a SSA# to be eligible as an individual for any federal program to include any refundable tax credits. Then bar any household with an illegal alien from receiving federal ‘welfare’ programs.
For systemic fraud check the address and names of the provider/business or voter. If someone is running a business from the address of a UPS store halt eligibility. Multiple businesses with same address? Halt payment. A dozen voters registered at the same address? Cull their registration. Someone billing more than 70 hours a week (12 hours 6 days) every week? Halt payment. Go to the address and investigate, if the folks there ain’t cooperative with the investigation then cut their program participation and permanently bar them from eligibility. Let them try to overcome the presumption they created if they can but otherwise that’s it. If any non Citizen commits these sorts of frauds remove/deport them.
How about this. The federal government stops all entitlement programs except Social Security and tell the states that if they want to fund such entitlements then it’s up to the states to find the money as the federal government will no longer be providing funds. And that way all fraud will stop immediately and once and for all.
There are many addresses with over 100 eligible voters, let alone a dozen. Before taking any action you have to actually go there and see what sort of building it is. That was what that idiot testifying for Trump in Georgia failed to do. He made a tremendous reveal about something like 60 or 70 voters all at the same address, and one of the Dem senators said I know that address very well, it’s in my district and there are easily over 100 residents, so that many voters is not at all surprising. The guy hadn’t bothered to check before testifying, and that discredited his entire testimony, even if everything else he said may have been correct.
Until people actually go to jail this is all just political theater, and therefore totally meaningless.
How about RICO for an additional way to punish the fraud that has taken place?
Step #1; Require everyone and every entity/NGO to reapply in order to participate in this taxpayer funded welfare scheme.
Step #2; Save a lot of taxpayer money.
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