Dr. Ouncesgives Minnesota 60 days to ‘repair’ Medicaid program or lose federal funding

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Facilities for Medicare & Medicaid Companies (CMS) Administrator Dr. Mehmet Ounceson Friday warned Minnesota Gov. Tim Walz that the state may lose federal Medicaid funding until it restores "the integrity" of its program.

In a put up on X, Ouncesclaimed that greater than $1 billion had been stolen by means of a large Medicaid fraud scheme carried out by "unhealthy actors" inside Minnesota’s Somali neighborhood, alleging that among the funds "could have even made its technique to the Somalian terrorist group Al-Shebab."

"Our employees at CMS informed me they’ve by no means seen something like this in Medicaid — and everybody from Gov. Tim Walz on down must be investigated, as a result of they’ve been asleep on the wheel," Ouncessaid.

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Ouncesclaimed that greater than $1 billion was stolen by means of a large Medicaid fraud scheme carried out by "unhealthy actors" inside Minnesota’s Somali neighborhood. (@DrOzCMS by way of X)

Ouncesdemanded Walz take the next corrective measures inside 60 days:

Ship weekly updates on anti-fraud efforts to CMS Freeze enrollment of high-risk suppliers for six months Confirm all present suppliers as "reputable" or take away them Ship CMS a corrective motion plan to forestall fraud sooner or later "If we’re unhappy with the state’s plans or cooperation, we’ll cease paying the federal share of those packages," Ounceswarned.

The CMS administrator pointed to 2 Minnesota Medicaid programs launched lately, noting dramatic spikes in prices.

The "Housing Stabilization Companies" program, projected at $2.6 million yearly, paid out over $100 million in 2024, in response to Oz.

The "Early Intensive Developmental and Behavioral Intervention" program grew from $3 million in 2018 to just about $400 million in 2023, he mentioned.

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The Facilities for Medicare & Medicaid Companies is demanding Minnesota Gov. Tim Walz handle an alleged Medicare fraud scheme carried out by "unhealthy actors" throughout the state's Somali neighborhood. (Scott Olson/Getty Pictures)

"These scammers used stolen taxpayer cash to purchase flashy automobiles, buy abroad actual property, and provide kickbacks to folks who enrolled their children at faux autism remedy facilities," Ouncessaid. "A few of it could have even made its technique to the Somalian terrorist group Al-Shebab . … "So why didn’t Walz cease them? That’s easy: as a result of he went all-in on id politics."

Minnesota officers beforehand reported the issue to CMS however failed to handle it successfully, in response to Oz.

"We stepped in and shut down the worst program: housing. We additionally froze supplier enrollment in just a few of probably the most abused packages," Ouncessaid.

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President Donald Trump lately introduced a flurry of actions to analyze alleged fraud schemes in Minnesota. (Alex Brandon/AP Picture)

Ouncesadded, "The message to Walz is obvious: both repair this in 60 days or begin wanting underneath your sofa for spare change, as a result of we’re finished footing the invoice to your incompetence."

The transfer comes as President Donald Trump lately introduced a flurry of actions to crack down and examine fraud schemes in Minnesota, which he has assailed as a "hub of cash laundering exercise," and cited as the premise of his determination to terminate deportation protections for a whole lot of Somali migrants.

This previous week, senior Trump administration officers introduced recent investigations, together with a brand new Treasury Division probe into how taxpayer {dollars} had been allegedly diverted to the terrorist group al-Shabaab, in response to Secretary Scott Bessent.

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The workplace of Governor Tim Walz didn't instantly reply to Fox Information Digital's request for remark.

Fox Information Digital's Breanne Deppisch contributed to this report.

Sophia Compton is a Author at Fox Information Digital. Sophia was beforehand a enterprise reporter protecting finance, vitality and tourism and has expertise as a TV information producer. She graduated with a journalism diploma in 2021 from the College of Hawaii at Manoa.