Dr. Mehmet Oz’s Warning on Medicaid Fraud

Dr. Mehmet Oz, who leads Medicaid, recently stated that the Trump administration is “aggressively” targeting organized crime from Russian and Armenian mobs in California to combat health care fraud. He hinted at plans for a significant campaign against these criminal networks.

During a stern announcement on Monday, Oz made it clear that federal authorities are intensifying efforts to address corruption among doctors who have allegedly collaborated with gangs to illegally extract billions from California’s health care system.

“This mafia seems to have taken over the system. They’re corrupting doctors and perpetuating fraud. Everyone knows it, but they’re so entrenched that we need to act decisively,” Oz expressed, noting that he oversees the Centers for Medicare and Medicaid Services.

He emphasized that this initiative aligns with the focus of his administration and President Trump, stating, “We can’t allow taxpayers’ money to be misappropriated just because people aren’t paying close attention anymore.”

Oz’s remarks were prompted by alarming reports that hospice care in Los Angeles had skyrocketed “seven times” over five years—a surge he described as alarming enough to warrant further investigation.

He suggested that this increase isn’t coincidental. Foreign criminal groups, particularly from Russia and Armenia, have allegedly infiltrated the system, corrupting medical professionals and enrolling ineligible patients in hospice care, billing for nonexistent services.

Oz mentioned that around 100,000 Medicare numbers had been provided to “100 bad doctors” who were led to believe they were terminally ill.

In Los Angeles County, dubbed the “epicenter” of this scheme, organized crime has reportedly siphoned more than $3.5 billion from health care payments.

Comparatively, Oz argued that California’s scale makes Minnesota’s issues with Medicaid fraud seem minimal. Recently, he and Minnesota’s Gov. Tim Walz have clashed over Medicaid funding amid claims of the need for integrity within the program.

Previous claims suggested that over $1 billion was misappropriated through a Medicaid fraud scheme involving “bad actors” within Minnesota’s Somali population, raising questions about the possible diversion of funds to the terrorist group al-Shabaab.

Oz expressed deep concern, noting that “CMS staff have indicated they’ve never encountered anything this severe within Medicaid. There needs to be a full investigation, starting from Gov. Tim Walz down, as it appears they have been inattentive.”