Billions in Alleged Fraud at Centers for Medicare and Medicaid Services

In this video, Fox News interviews Dr. Mehmet Oz following his swearing-in as Administrator of the Centers for Medicare and Medicaid Services (CMS), the agency that insures more than 160 million Americans and oversees $1.5 trillion in annual spending. According to the segment, Dr. Oz outlines his mission to combat what he characterizes as massive fraud, waste, and abuse within the healthcare programs, claiming the agency has discovered billions of dollars in allegedly improper spending.

Dr. Oz tells Fox News that his “main focus is wage a war on fraud, waste and abuse,” describing it as a “massive issue” involving “hundreds of billions of dollars potentially out there.” In the video, he claims CMS has established a “war room” to address problems he alleges have been overlooked. According to Dr. Oz, the issues discovered at CMS through Medicaid, Medicare, and the exchanges “will bring a shiver to you.”

The interview addresses Democratic criticism that the administration plans to cut Medicare and Medicaid benefits. Fox News plays clips of Democratic lawmakers alleging cuts to these programs. In response, Dr. Oz claims President Trump instructed him to “love and cherish” Medicare and Medicaid, stating the focus is on “saving Medicaid” rather than cutting it.

According to the video, Dr. Oz provides specific examples of alleged improper spending. He claims “a billion dollars” in Medicare money was spent because “people were registered in multiple states on Medicaid at once.” He alleges that $200 million was spent on housekeeping services, questioning whether such expenses fall within Medicaid’s mandate. Additional examples cited include $10 million allegedly spent on student loans through Medicaid, $3 million on diversity, equity, and inclusion initiatives, and $11 million on labor union childcare benefits. Dr. Oz also claims that “almost a quarter million people were registered in the marketplace who shouldn’t have been.”

In the segment, Dr. Oz states that CMS has “already discovered since I’ve been here and even before since the inauguration tens of billions of dollars that’s fraud easily taken back.” He describes these issues not as “small mistakes” but as “organized criminal efforts to hurt our country,” with some allegedly “launched by foreign countries.” According to the video, he recently stopped “a couple hundred million” from going out the door to entities engaged in allegedly illegitimate activities, and cites stopping $31 million the previous week as another example.

Dr. Oz emphasizes in the interview that beneficiaries who fall into traditional Medicaid categories—poor children, pregnant women, the elderly, and disabled—will not be affected by his efforts. He argues that reducing fraud, waste, and abuse is necessary to protect these vulnerable populations and ensure the program’s sustainability.

In Fox News’s Own Words

“My main focus is wage a war on fraud, waste and abuse. Hundreds of billions of dollars potentially out there.”

“A billion dollars went because people were registered in multiple states on Medicaid at once.”

“These aren’t just small mistakes. Organized criminal efforts to hurt our country. Some of them launched by foreign countries.”

This interview matters because it frames the administration’s approach to managing the nation’s largest health insurance programs amid political controversy. With CMS overseeing care for 160 million Americans and controlling $1.5 trillion in spending, allegations of widespread fraud and the response to those claims have significant implications for beneficiaries, healthcare providers, and taxpayers. The debate over whether efforts constitute necessary fraud prevention or harmful cuts to vital safety net programs will likely continue as a central political issue.