When They Say It’s Not About the Fraud, It’s About the Fraud

Walz Denies Reality as CMS Stops Paying Minnesota’s Sketchy Invoices First

Governor Tim Walz’s baffling response to the latest federal deferral of $199 million in Medicaid payments only make things worse for a state trying to go a day without reminding the rest of the country that crooks steal our lunch money. In a post on X, Walz responded to the latest withhold of federal funds:  “it isn’t about fraud – it’s about cutting your health care so that Trump can afford tax cuts he gave to billionaires.”

As H.L Mencken might have said, “When they say it’s not about the fraud, it’s about the fraud.”

Governor Walz either believes that fraud is not real, or for whatever reason that it is not worth stopping. Trump wants better fraud checks before paying questionable invoices. Minnesota is the land of 10,000 sketchy invoices right now, so it makes sense that our Medicaid requests are getting audited for the third time this year.

Centers for Medicare and Medicaid Services Administrator head Dr Mehmet Oz made it clear that his intent is to root out fraud by preventing it in the first place. Rather than “pay and chase” money to fraudsters (only to find that the money is spent by the time the crooks get caught) Oz is using investigators, AI and common sense to identify and stop payment for “funny looking requests.”  

According to the Administrator,

CMS also reviewed Medicaid claims in 14 high-risk service areas in Minnesota. The review identified claims that require additional documentation, including expenditures linked to providers flagged through program integrity reviews and other claims with potential eligibility or billing concerns. CMS is deferring approximately $199 million in federal Medicaid payments while that review continues.

The same pattern has played out for years. Federal prosecutors have investigated providers in massive schemes involving autism services (EIDBI), housing stabilization, and related programs, with loss amounts in the tens and hundreds of millions. Walz’s own Department of Human Services, under federal pressure, recently disenrolled more than 3,000 high-risk Medicaid providers after a revalidation process. Those are not Republican talking points. They are documented facts.

Dr. Oz is right. The old “pay and chase” model puts the crooks on easy street. It pays suspicious claims first, then spends years trying to claw the money back—if it can be found at all. That approach has failed Minnesota taxpayers and the legitimate recipients who rely on these programs. Stopping questionable payments upfront, demanding documentation, and holding states accountable for the federal dollars they spend is not radical. It is basic fiscal responsibility.