EXCLUSIVE: Dr. Oz Exposes Billions in Medicaid Fraud as Democratic Governors Profit from the Rot

Billions of taxpayer dollars are hemorrhaging through fraudulent Medicaid schemes while Democratic governors stand by and collect political dividends from the very criminals bleeding America dry.

Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, pulled no punches Sunday when he named names and exposed the systematic looting of public health programs under Democratic leadership.

“Some governors have not been serious about these problems,” Oz declared, singling out New York’s Kathy Hochul, California’s Gavin Newsom, and Minnesota’s Tim Walz as the chief offenders in what amounts to the largest healthcare fraud operation in American history.

The numbers are staggering. New York alone operates a $124 billion Medicaid program now under federal investigation for systematic fraud and corruption.

Political Patronage Masquerading as Healthcare

Oz didn’t mince words about what’s really happening in blue-state Medicaid programs.

“There’s a rot in the system. The fraud you see in New York state isn’t a flaw — it’s a feature for some people,” he stated with surgical precision.

The Trump administration’s top Medicaid official revealed that New York has experienced an explosion of taxpayer-funded home care workers performing duties traditionally handled by family members. The real purpose? Creating a massive patronage system that funnels billions in government contracts to politically connected operators.

“I think it is political patronage, and it’s a jobs program,” Oz explained, describing how Democratic machines manufacture healthcare “needs” to justify bloated spending that enriches their allies.

New York spends approximately $1.2 billion on senior community care centers, primarily concentrated in Brooklyn and Queens — Democratic strongholds where political loyalty translates into taxpayer-funded contracts.

“What are you actually doing for them? These [bills] are manufactured,” Oz said, cutting through the progressive rhetoric to expose the grift underneath.

California’s Hospice Hustle

If New York’s scheme is brazen, California’s operation is positively audacious.

Oz revealed that Los Angeles County alone contains roughly 2,000 hospice facilities — nearly one-third of the entire nation’s total of 6,000.

The kicker? Nobody’s dying in them.

“No one dies in these hospices. No one’s dying because they are lying. They’re signing up people falsely. They trick people into signing up. They charge a lot of money to the federal government,” Oz explained, detailing a scheme that would make Tony Soprano blush.

California’s Medicaid spending on hospice care dwarfs every other state, not because Californians are sicker, but because the Golden State has become a paradise for healthcare fraud rings — some allegedly connected to organized crime.

“In California, the governor ignored continuous calls from his own auditors to deal with these problems. Whether it’s the Russian mafia or other groups, they seem able to get him to look the other way,” Oz said, directly implicating Newsom in allowing criminal enterprises to feast on federal healthcare dollars.

The Willful Blindness of Smart People

Perhaps Oz’s most damning observation cuts to the heart of Democratic governance: this isn’t incompetence, it’s policy.

“When really smart people don’t fix the problem, it’s because they don’t want to fix the problem,” he stated plainly.

The administrator pointed out that New York’s problem has been flagged repeatedly by auditors, watchdogs, and federal investigators. Hochul isn’t ignorant of the fraud — she’s benefiting from it.

“In New York State, there’s a tremendous amount of pressure on Gov. Hochul to not in any way interfere with the many monied interests who profit when you’re spending a lot more money than any other state per beneficiary on Medicaid,” Oz explained.

Translation: The fraudsters are campaign donors, political allies, and union bosses who deliver votes and cash. Hochul protects them because they protect her.

Even Florida Has Problems

To his credit, Oz didn’t spare Republican states entirely. He noted that Florida, under GOP Gov. Ron DeSantis, has twice as many medical equipment suppliers billing Medicaid as it has McDonald’s franchises.

But Oz made clear the scale and intentionality of fraud in Democratic states far exceeds anything happening in red America.

The difference? Republican governors aren’t actively protecting the fraudsters for political gain.

The Justice Department Moves In

The Trump administration isn’t just talking. The Justice Department is preparing to file a major lawsuit against Hochul’s administration over its rigged overhaul of the state’s Medicaid home care program.

Oz’s agency has launched an extensive probe into New York’s entire $124 billion Medicaid operation, promising accountability that never materialized under previous administrations that turned a blind eye to blue-state corruption.

Hochul’s Hollow Defense

Predictably, Hochul’s spokesperson responded with deflection and partisan attacks rather than addressing the substance of Oz’s allegations.

The governor’s office claimed Hochul has been “leading efforts to root out waste, fraud and abuse” while simultaneously accusing the Trump administration of trying to “rip away healthcare from everyday New Yorkers.”

The statement is laughable on its face. If Hochul were seriously addressing fraud, federal investigators wouldn’t be descending on Albany right now.

Her supposed reforms of the Consumer Directed Personal Assistance Program came only after years of documented abuse and federal pressure — hardly the proactive leadership her spin doctors claim.

Following the Money

The Medicaid fraud epidemic in blue states isn’t complicated. It’s a straightforward scheme where Democratic politicians protect fraudsters who provide campaign contributions, union support, and patronage jobs that sustain political machines.

Taxpayers fund the fraud. Patients suffer from degraded care. Criminals pocket billions.

And Democratic governors look the other way while cashing the checks.

Oz’s investigation represents exactly the kind of aggressive oversight Americans elected President Trump to deliver. No more sweetheart deals for Democratic donors. No more tolerance for organized looting of federal programs.

The healthcare swamp is about to be drained, and the creatures who’ve been feeding at the trough are running scared.

Newsom’s silence speaks volumes. When a federal official accuses you of enabling the Russian mafia to defraud Medicaid and you have no response, that’s called a confession.

The Real Healthcare Crisis

While Democrats pontificate about expanding government healthcare, they can’t even prevent massive fraud in the programs that already exist.

New York spends more per Medicaid beneficiary than virtually any other state, yet delivers mediocre outcomes. Where does the money go? Into the pockets of politically connected operators running scam operations disguised as healthcare providers.

California’s hospice explosion isn’t meeting patient needs — it’s manufacturing false billings to extract maximum federal dollars.

This is progressive governance in action: bloated, corrupt, and designed to enrich insiders while average Americans foot the bill.

Accountability Has Arrived

The era of consequence-free fraud is over. Dr. Oz and the Trump administration are bringing transparency and enforcement to programs that Democrats have treated as political slush funds.

Hochul, Newsom, and Walz can spin, deflect, and attack all they want. The investigators are coming, the lawsuits are being filed, and the American people are watching.

The choice for these Democratic governors is simple: cooperate with federal investigators and clean up your states’ Medicaid programs, or be exposed as willing participants in the largest healthcare fraud scheme in American history.

Based on their records, we know which path they’ll choose. And we know the Trump administration is ready for them.