Ohio – Just days after stepping into Ohio’s heated debate over Medicaid oversight and publicly backing Governor Mike DeWine amid accusations of fraud within the state’s home healthcare system, Dr. Mehmet Oz is now helping lead a much larger national effort focused on Medicaid spending.
While Oz recently urged stronger safeguards without embracing claims of widespread abuse in Ohio, he has taken a far more aggressive tone at the federal level as the Trump administration launches a sweeping campaign aimed at reducing waste, tightening eligibility rules, and recovering taxpayer dollars that officials say have been improperly spent.
Speaking during a White House briefing on Tuesday, the Centers for Medicare and Medicaid Services administrator outlined what he described as a major effort to protect government healthcare programs from fraud and misuse. The administration’s plan combines stricter oversight of federal healthcare spending with new requirements for millions of Medicaid recipients across the country.
Oz argued that the administration is trying to prevent what he called “legalized money laundering,” warning that failing to act could have dramatically increased costs in the years ahead.
According to Oz, federal officials have identified roughly $2 billion in taxpayer money that was improperly used to provide healthcare benefits to illegal immigrants. He said that figure has doubled since he first raised concerns about the issue last year.
California became a central focus of his remarks. Oz said federal officials informed California that it owes the federal government approximately $2 billion connected to improper spending. He added that about half of that amount has already been recovered. “Just to put it in context, in California, if you’re on Medi-Cal, the Medicaid program in California, until this administration, you got full dental and full vision benefits,” Oz said. “Now, I’m for those benefits, I like them, but we don’t give that to Medicare patients. So we should at least be equitable, and all of us together should decide what we are going to do as a nation.”
He argued that taxpayers across the country were helping fund benefits that many states never approved for people living in the country illegally. “The people who pay that bill, when … the largesse of California allows folks to get benefits that the rest of the country doesn’t think is appropriate for illegal immigrants …, is paid by folks who are taxpayers in New Mexico — which is a blue state — and Mississippi, a red state,” he continued.
New work requirements coming to Medicaid
Alongside the administration’s efforts to recover federal funds, officials are also moving forward with one of the most significant Medicaid policy changes in years.
Under the new rules, able-bodied adults receiving Medicaid benefits will be expected to work at least 20 hours per week, participate in volunteer activities, or pursue educational opportunities in order to maintain coverage.
Administration officials say the policy is intended to encourage workforce participation while preserving Medicaid for those who need it most.
Oz argued that too many people who are physically capable of working are remaining outside the workforce while continuing to receive government assistance. “If you’re sitting at home, which is true for the millions of people who are able-bodied on Medicaid, on average, you’re spending 6.1 hours watching television just hanging around,” Oz said.
The CMS administrator described the new policy as a “path to prosperity” and said it reflects the original purpose of Medicaid when it was created in 1965.
Rather than viewing the requirement as a punishment, Oz framed it as an opportunity for recipients to become more engaged in work, education, or community service.
He repeatedly stressed that the administration is trying to strengthen Medicaid rather than weaken it. “If you can work, you should get up and work,” Oz said. “… If we put guardrails around these programs, we’ll allow them to thrive. I’m here because I love Medicaid. The president has already said he loves and cherishes Medicaid and Medicare. … We cannot allow these programs to be defrauded into a turmoil that they cannot pull up from. If we love these programs, we will make the difficult decisions.”
A broader push on oversight
The announcement comes at a time when questions about Medicaid spending are drawing increased attention in both Washington and state capitals.
In Ohio, for example, recent debates have centered on whether home healthcare programs are adequately monitored and whether stronger anti-fraud measures are needed. Oz recently expressed confidence in Governor DeWine’s handling of those programs while also supporting stronger oversight and clearer safeguards.
The federal initiative now expands that focus nationwide. Administration officials argue that recovering improperly spent funds, reducing fraud, and increasing accountability are necessary steps to preserve the long-term future of Medicaid and Medicare. Supporters see the effort as a way to protect taxpayer dollars and encourage greater workforce participation. Critics, however, are likely to scrutinize both the claims surrounding spending on illegal immigrants and the impact that work requirements could have on low-income Americans who depend on Medicaid coverage.
For now, the administration is presenting the changes as part of a broader effort to reshape federal healthcare programs, with Oz serving as one of the most visible advocates for the reforms. Whether the policies achieve their intended goals or spark further political battles, they are poised to become a major part of the national debate over healthcare, government spending, and public assistance in the months ahead.
