MedCity News October 17, 2025
CMS Administrator Dr. Mehmet Oz said that Medicaid’s rapid spending growth is unsustainable and criticized state financing tactics that let providers and governments “game” the system for extra federal funds. He said CMS is shifting its fraud strategy to follow the flow of money rather than just individual offenders in an effort to ensure health dollars are used for legitimate care.
Medicaid is now the fastest-growing expense for most states, oftentimes crowding out funding for education and social services.
CMS Administrator Dr. Mehmet Oz drew attention to this during a talk this week at Sanford Health’s Annual Summit on the Future of Rural Health Care in Sioux Falls, South Dakota.
He noted that federal Medicaid spending has increased by 50%...
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