Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz announced on Thursday that an internal review has uncovered more than $1 billion in Medicaid payments to illegal immigrants across several states. The Trump administration is now moving to address this issue, with Oz stating that the findings demonstrate a systemic problem that needs correction. During an interview on Fox & Friends, Oz accused Democrats of gaslighting the public by downplaying the issue of Medicaid funds being directed to illegal immigrants. He argued that taxpayer dollars should not be used to fund healthcare for individuals who do not contribute to the system, a stance he described as a moral imperative.
This issue has become a major sticking point in the ongoing government shutdown, now in its third week. Republicans accuse Democrats of blocking efforts to reduce government waste by allowing unauthorized healthcare benefits to undocumented immigrants. Oz emphasized that the review is only beginning, with the initial findings covering a limited number of states, and that his agency is expanding its investigation across the country. He also raised concerns about how federal tax dollars are being allocated, suggesting that states like California, which offer extensive benefits to undocumented immigrants, are siphoning funds from other states.
Democrats have refused to compromise on reopening the government, insisting that they will not approve a funding bill unless it includes an extension of enhanced Affordable Care Act subsidies set to expire in 2025. Their position is that not passing these extensions before open enrollment in November could lead to higher healthcare premiums for millions of Americans. However, the White House has countered that Democrats’ proposals would result in nearly $200 billion in healthcare spending for illegal immigrants and other non-citizens over the next decade — an amount sufficient to fund the entire Children’s Health Insurance Program. Oz described this as a moral issue, arguing that taxpayer funds should not be used to support healthcare for individuals who do not pay into the system.
While federal law prohibits illegal immigrants from enrolling in Medicaid, some states have used loopholes to extend certain healthcare benefits to them. Oz said his agency is working to close these loopholes, asserting that the Trump administration is committed to protecting U.S. taxpayers. He concluded by stating that the administration is focused on ensuring that federal funds are not misused to provide benefits to individuals who do not contribute to the system. The ongoing debate highlights the deepening political divide over government spending and healthcare policy in the United States.