Trump-appointed Medicare and Medicaid chief Dr. Mehmet Oz says the government could save hundreds of billions by stopping systemic Medicaid abuse. In a national TV interview, he laid out a plan to curb fraud without hurting care for those truly in need.
Key Facts:
- Dr. Mehmet Oz, CMS Administrator under Trump, is targeting Medicaid inefficiencies and fraud.
- He revealed the federal government may be double-paying states for individuals enrolled in Medicaid in more than one state.
- Oz estimates up to $10 billion annually is lost through multi-state duplication and other “systematic waste.”
- The Trump administration plans to realign Medicaid spending to benefit truly needy recipients, not able-bodied adults.
- Oz spoke publicly at the 2025 Milken Institute Global Conference and on FOX Business to outline the reform strategy.
The Rest of The Story:
Dr. Mehmet Oz, now overseeing Medicare and Medicaid under the Trump administration, is taking direct aim at what he calls systemic problems within Medicaid.
In recent remarks, he described Medicaid as misdirected—allocating funds to individuals who don’t meet the original intent of the program.
Oz identified double-enrollment as a major issue.
Patients moving from one state to another may be counted twice, leading to both states receiving federal reimbursements.
According to Oz, the system has no built-in incentive for states to alert the federal government when this occurs—because it benefits them financially.
Dr. Oz sees this as a once-in-a-generation opportunity to clean up the system.
The administration’s stated goal is not to cut care but to improve efficiency by cutting fraud, abuse, and unnecessary payouts that ultimately harm the system and taxpayers.
🚨 WOW! Dr. Oz, the new administrator of Medicare, says they’ve found BILLIONS in fraud already, and set up a war room to uncover it all
“If you thought USAID was bad… this will make you shiver.”
We need to do more than just cut the fraud. We must ARREST the fraudsters pic.twitter.com/gf17897He9
— Nick Sortor (@nicksortor) April 25, 2025
Commentary:
It shouldn’t shock anyone that Medicaid has become a magnet for fraud and abuse, but the scale of the waste Dr. Oz describes is staggering.
That states would knowingly allow double-enrollment just to collect extra federal dollars speaks volumes about how broken the system really is.
This isn’t a case of a few bad actors gaming the system—it’s a structure that practically invites fraud.
States face no penalties for allowing inefficiencies to persist.
In fact, they benefit from them.
That points to a Medicaid program less focused on serving the truly needy and more on padding state budgets.
Dr. Oz’s experience as a heart surgeon gives him a unique perspective.
He understands that bad care leads to more expensive care down the line.
And he’s absolutely right—inefficiency isn’t just wasteful, it’s harmful.
Patients get hurt when money that should go toward their treatment is squandered on fraudulent claims or improper duplication.
The fact that able-bodied individuals are drawing resources away from those who are truly vulnerable only makes matters worse.
Medicaid was never intended to become a default safety net for adults who could otherwise be working or covered through employment.
Yet that’s where it has drifted.
Dr. Oz’s commitment to exposing and fixing these issues is commendable.
But history tells us that judges, bureaucrats, and political opposition will likely stand in the way of serious reform.
That’s the unfortunate reality of any attempt to fix government programs bloated by decades of unaccountable spending.
If the Trump administration can back Dr. Oz with real enforcement power—and withstand the inevitable court challenges—it could mark a real turning point in how Medicaid operates in this country.
The Bottom Line:
Dr. Mehmet Oz is shining a light on massive Medicaid waste, where states can profit from federal blind spots.
His plan focuses on cutting abuse while preserving care for those who need it most.
With potentially hundreds of billions at stake, the Trump administration sees this as a chance to finally fix one of the nation’s most bloated entitlement programs.
Whether they’ll be allowed to is another question.
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