Dr. Oz Slams California as ‘Worst Offender’ in $1.8 Billion Medicaid Scandal: Withholds $300 Million From State

Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz announced on X that audits have uncovered over $1.8 billion in unlawful federal Medicaid spending on non-emergency health care for illegal immigrants across eight states—with California leading the pack as the “worst offender,” including a staggering $1.31 billion from California alone, dwarfing the totals from Illinois, Washington, Colorado, Oregon, and other states combined.

As the California Globe previously reported, Governor Gavin Newsom’s “free healthcare for all” gimmick—enrolling 1.7 million illegal immigrants—has accounted for roughly one-fourth of all state Medi-Cal spending, surging 35 percent higher than initial projections.

Dr. Oz, pulling no punches in his role under the Trump administration, emphasized that federal law prohibits using Medicaid dollars for anything beyond emergency care for illegal immigrants. States can fund such programs with their own money, but they must prove no federal funds are involved—a paper trail these rogue states, dominated by Democrat leadership, failed to provide.

“Medicaid dollars belong to Americans, not illegal immigrants,” Dr. Oz declared in his post, vowing to hold accountable those who’ve been siphoning taxpayer money. He specifically called out California, announcing that CMS is withholding nearly $300 million until the state demonstrates compliance. 

In a video, Dr. Oz laid bare the national implications for California’s fiscal recklessness. “What that means is if you are a taxpayer in Texas or Florida, your tax dollars could’ve been used to fund the care of illegal immigrants in California,” he explained, highlighting how federal matching funds have effectively subsidized California’s expansive Medi-Cal program for illegal immigrants, a direct result of Governor Gavin Newsom’s controversial expansion that enrolled approximately 1.7 million illegal immigrants at an annual cost now estimated between $10–12 billion.

During the “Schumer Shutdown,” we reported on the Democrats’ gimmicks to steer federal taxpayer dollars to illegal immigrants for “free healthcare:”

The U.S. government has shutdown due to a budget impasse between Republicans and Democrats over funding Medicaid for an estimated 1.4 illegal immigrants enrolled on the taxpayer funded program.

Democrats have tried to convince Americans that illegal immigrants cannot receive federal healthcare benefits, yet there are many states, like California, who have drafted their own policies and used loopholes to provide Medicaid benefits to illegal immigrants.

“California is one of eight states that has expanded their Medicaid programs to provide taxpayer-funded health care to illegal aliens. While federal law currently prohibits federal Medicaid funding from going to illegal aliens, with the exception of emergency services, recent watchdog reports expose how federal taxpayers pick up the tab for these state expansions of Medicaid. For instance, California is financing its expansion of Medicaid to illegal aliens by implementing a budget gimmick to draw down increased federal funding, placing American taxpayers on the hook for the free health care California is giving to illegal aliens,” according to a report by the Congressional Budget Committee.

The Globe has covered this boondoggle extensively with recent reports showing Medi-Cal is insolvent–costing taxpayers $23 billion over 2 years, forcing Newsom to get both an emergency loan and a bailout, Rep. Kevin Kiley confirmed.

Despite these facts and figures, Rep. Rho Khanna claims that Medicaid funding for illegals is “just a small part” of the overall expense. Yet, estimates show that California received a jaw dropping $4 billion subsidy from the federal government to pay for illegal immigrants to have “free” healthcare.

For years, the California Globe has exposed these budget gimmicks, from Newsom’s backroom deals with Kaiser Permanente to force more Californians into managed care, to the co-dependent welfare state that’s left 5.5 million on food stamps while prioritizing illegal immigrants. 

Dr. Oz’s  revelation underscores the ongoing fiscal strain on California’s Medi-Cal system, which has been pushed toward insolvency by the inclusion of noncitizens. Newsom was forced to pause further expansions in 2025 amid a ballooning budget deficit, yet the program continues to consume roughly one-quarter of all state Medi-Cal spending—far exceeding original projections.

Dr. Oz’s audits reveal not just waste but outright fraud, with some beneficiaries including individuals with criminal records for murder and assault. California’s share alone dwarfs the other states: Illinois ($29.8 million), Washington ($2.4 million), Colorado ($1.5 million), Oregon ($5.4 million), and the District of Columbia ($2.1 million). The total has climbed from six to eight states since October, with more investigations promised. This comes amid a broader Trump administration crackdown, including sharing Medicaid data with ICE to enforce immigration laws—a policy California Attorney General Rob Bonta unsuccessfully sued to block.