Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, told a room full of reporters today during a White House briefing to say what millions of taxpayers already know: Medicaid was built for vulnerable Americans, not illegal immigrants, state bookkeeping tricks, and political generosity charged to people who had no say in the bill.
🇺🇸 Dr. Oz on Medicaid:
“If you’re going to get something of value from the American people, there should be some obligation, if you’re able to. When Medicaid was created, that was the deal.”
Work requirements for able-bodied adults with no kids. Common sense.… https://t.co/zNmX9SgFeI
— Mario Nawfal (@MarioNawfal) June 2, 2026
Oz’s plan targets roughly $2 billion in federal money tied to improper health care spending for illegal immigrants, with California’s Medi-Cal program at the center of the fight. Federal officials already recovered part of the money, and CMS wants to stop future costs before loopholes become permanent claims on taxpayers. Fox News reports that Oz targeted the Medi-Cal program.
He specifically took aim at California, noting CMS told the state it owes the federal government $2 billion — half of which has already been successfully recouped.
“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.”
“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.
California expanded Medi-Cal coverage for illegal immigrants and offered benefits, including dental and vision care, beyond what many Medicare patients receive.
Federal taxpayers in Wisconsin, Iowa, Tennessee, and every other state shouldn’t get dragged into California’s political experiment because Sacramento found a clever way to move money through Medicaid’s pipes. A state can make its own choices, but elected leaders should openly pay for those choices instead of sending the invoice to Washington and hoping nobody follows the trail.
CMS already moved against a broader Medicaid financing loophole that lets some states generate inflated federal payments through healthcare-related tax arrangements.
The agency said its 2025 proposal would save taxpayers over $30 billion over five years. A later final rule framed the policy as a way to restore the federal-state partnership and protect Medicaid for the people the program was designed to serve.
Oz called some arrangements a shell game, and the phrase fits because the money keeps moving while accountability conveniently stays out of sight.
The work requirement portion of the overhaul shouldn’t cause anyone to faint. Able-bodied Medicaid recipients must meet 80 hours per month through work, job training, community service, qualifying education, or a mix of those activities. From Reuters:
Eligibility for enrollees must be verified at least every six months or at plan renewals, but states can choose to conduct checks more frequently.
“These folks are crowding out programs that were originally designed for those truly in need,” said Centers for Medicare & Medicaid Services Administrator Mehmet Oz.
Oz said the initiative aims to move able-bodied enrollees to employer-sponsored health plans and “free up critical space in the program for our most vulnerable populations.”
Medicaid is jointly funded by state and federal governments, unlike Medicare for older Americans, which is fully federal. States will receive a combined $200 million in grants to support implementation.
Exemptions apply for pregnant women, disabled people, medically frail people, and recipients who already meet certain SNAP work requirements. States must verify compliance at least every six months, with implementation scheduled to start Jan. 1, 2027.
Rep. Frank Pallone (D-N.J.) argues the rule could bury eligible people in paperwork and cause some Americans to lose coverage:
The Trump Administration has already overseen the largest health care cuts in our nation’s history. Now, they’re doubling down with paperwork requirements so difficult to comply with that millions of Americans will likely lose their health care as a result.
The Trump Administration’s rule is onerous by design. It’s work requirements on steroids. If finalized, it will force people to jump through so many hoops that it will be virtually impossible to get and keep their health care.
I urge the Trump Administration to withdraw this rule. People are already struggling to get by as prices on everyday expenses skyrocket, and now millions of Americans will lose their health care not because they’re not working, but simply because they got buried in paperwork. We should be making it easier and more affordable for people to see their doctor—not harder and more expensive.
Administrative failure would deserve criticism if CMS builds a clumsy system, especially for people who qualify and try to comply.
Even so, paperwork concerns don’t justify leaving Medicaid open to abuse. Oz says CMS will improve outdated government systems so auditors can review state enrollment and provider data more cleanly, especially in the 44 states that don’t run their own Medicaid platforms.
Oz’s job now includes making Medicaid’s numbers match the law instead of the wish list. Medicaid began in 1965 as a safety net for low-income Americans, disabled people, children, pregnant women, and others in genuine need.
It didn’t begin as a reward system for illegal entry or a blank check for state officials who enjoy compassion when somebody else is paying for it.
Illegal immigrants don’t deserve publicly paid benefits. Able-bodied adults who can work, study, volunteer, or train should contribute. States that want expanded benefits for illegal immigrants should explain the cost to their own voters and cover the bill themselves.
Taxpayers have carried enough clever excuses from leaders who confuse generosity with access to somebody else’s wallet. Oz’s reforms won’t solve every Medicaid problem, but they place the program back where it belongs: beside Americans who truly require help.
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