CMS Administrator’s Claims of Fraudulent Autism Diagnoses in Minnesota

Dr. Mehmet Oz, the Administrator of the Centers for Medicare and Medicaid Services (CMS), revealed that fraudsters in Minnesota incentivized mothers to falsely claim their children were autistic, offering around $1,500 for each fraudulent diagnosis. This led to children being diagnosed with autism when, in reality, they did not have the condition.

During a recent event with President Donald Trump and Vice President JD Vance, Oz praised the anti-fraud task force’s efforts and independent investigations that brought the fraudulent activity to light.

Oz emphasized that such fraudulent actions extend beyond financial theft, suggesting they’re a breach of trust. “Fraud doesn’t just steal our money. Fraud steals people’s lives and it also steals our trust as a nation, and that is devastating to any country,” he stated.

He elaborated on the dual victims of this scheme: children wrongly diagnosed remain burdened by that label, while mothers of children with genuine needs find themselves unable to access necessary care.

After analyzing the findings, CMS scrutinized providers involved in 14 high-risk programs in Minnesota, discovering that about a third were not legitimate. “One in three shouldn’t have been doing that job,” Oz remarked. The agency is currently investigating numerous cases and has withheld around half a billion dollars in payments to the state.

Oz credited independent journalist Nick Shirley, who recorded a video showing unoccupied Minneapolis daycare and autism centers, capturing federal attention. Shirley claimed his investigations uncovered approximately $100 million in fraud within just one day.

Minnesota’s autism program surged from about $3 million in 2018 to nearly $400 million in recent years. Prosecutor Joe Thompson indicated that the state’s 14 high-risk programs have generated costs of $18 billion since 2018, with more than half potentially stemming from fraudulent activities.

Vance was appointed by Trump to lead a Task Force aimed at eliminating fraud. This Task Force convened for the first time at the White House earlier this year, involving Cabinet secretaries, along with officials from the Justice Department and Treasury. In December, Oz issued a 60-day ultimatum to Minnesota Governor Tim Walz (D), urging him to restore the integrity of the program or face funding cuts.

Walz has criticized the federal initiative, labeling it a “campaign of retribution” and accusing the administration of exploiting federal resources to target states like Minnesota.