Medicaid Chief's $1bn 'Illegal Immigrant' Claim Debunked by Experts
Oz's $1bn Medicaid Claim for Immigrants Debunked

Medicaid Chief's Controversial Claim Sparks Outcry

Washington DC witnessed significant protests on 22 May 2025 as demonstrators gathered to voice their opposition against impending Medicaid cuts. The controversy intensified when Mehmet Oz, administrator for the Center for Medicare and Medicaid Services (CMS), made a startling claim on social media.

Oz asserted that audits had uncovered "more than $1bn of federal taxpayer dollars were being spent on funding Medicaid for illegal immigrants". However, healthcare experts and immigration specialists have thoroughly debunked this statement, revealing that the audits in question were actually routine administrative reviews completely unrelated to immigration status.

Experts Reveal Truth Behind Routine Audits

Leo Cuello, a research professor at Georgetown University's Center for Children and Families, explained that the audits referenced by Oz appear to be standard procedure. "Based on the reporting, it appears that it is related to administrative errors in state claiming for matching funds, which is a relatively common occurrence", Cuello stated.

These routine audits typically address situations where states might accidentally seek federal reimbursement for programs that should receive only state funding, such as Meals on Wheels. Cuello described these audits as "the most vanilla and normal thing that happens all the time", with reporting from Oregon Live and KFF confirming their routine nature.

What concerns experts is not the audits themselves, but how Oz presented them. The CMS administrator connected these standard reviews to broader political debates about HR1 (the One Big Beautiful Bill Act) and the Affordable Care Act, creating what Cuello called an "apples and oranges" comparison that misrepresents the facts.

Real Impact on Immigrant Communities

Nina Yamanis, a professor at American University's School of International Service, emphasised the practical impossibility of Oz's claim. "I can't imagine you could get on Medicaid while undocumented", she stated, explaining the rigorous verification process that includes checking homeland security databases and immigration documents.

Even if the $1bn figure were accurate, Cuello noted it would represent "about one-tenth of 1% of the trillion dollars that was cut out of the Medicaid program", with those cuts primarily affecting US citizens rather than undocumented immigrants.

The dangerous consequence of such rhetoric, according to experts, is the creation of an atmosphere where lawfully present immigrants are avoiding necessary medical care. Yamanis reported accounts of eligible immigrants in North Carolina refusing to sign up for newly available Medicaid expansions due to fear of system punishment.

"When people are afraid to access care, it worsens health outcomes for everyone", Yamanis warned, pointing to increasing HIV infections among Latinos over the past decade as evidence of the broader public health impact.

The situation becomes particularly dire for vulnerable groups. Yamanis explained that "gay men and trans women are more at risk for HIV, and if they're immigrants and Latino, they tend to come from countries where they were discriminated against, often with violence, and they really don't want to go back", making the threat of deportation especially terrifying for these communities.

The CMS did not respond to requests for comment regarding Oz's misleading statements and their potential consequences for public health and immigrant communities.