PORTLAND, Ore. — The Oregon Health Authority (OHA) has firmly denied allegations made by Mehmet Oz, the former television host and current Centers for Medicare & Medicaid Services (CMS) administrator, claiming that Oregon misused $5.4 million in Medicaid funds on undocumented immigrants.
The controversy began after Oz posted on social media Friday, alleging that a preliminary audit found six states and Washington, D.C. had improperly allocated over $1 billion in Medicaid funds to people living in the country illegally. Oregon was among those named, along with California, Illinois, Washington, D.C., Washington State, and Colorado.
Oz’s Allegation
In his post on X (formerly Twitter), Oz accused “Democrats” in those states of violating federal law by expanding Medicaid coverage to undocumented immigrants beyond the emergency services allowed under current regulations.
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“We notified the states, and many have begun refunding the money,” Oz wrote. “But what if we had never asked? Whether willful or not, the states’ conduct highlights a terrifying reality: American taxpayers have been footing the bill for illegal immigrants’ Medicaid coverage, despite many Democrats and the media insisting otherwise.”
Oz’s message quickly gained traction online, fueling political debate about healthcare funding and immigration policy.
He claimed Oregon had improperly spent $5.4 million in federal Medicaid dollars on healthcare coverage for undocumented residents. He also alleged that California accounted for the largest share, with over $1.3 billion spent, according to his interpretation of the audit data.
Oregon Health Authority Denies the Claim
In response, the Oregon Health Authority strongly rejected Oz’s assertions, calling them “false and misleading.”
In a statement to KOIN 6 News, OHA said that Oz’s characterization of the audit misrepresents both the facts and the nature of the review.
“The administrator’s claim is false and mischaracterizes not just this essential part of our nation’s emergency care infrastructure, but also an ongoing, routine audit process,” the agency said.
According to OHA, CMS had requested data in June related to Oregon’s Medicaid members as part of a standard audit review. That data included spending on emergency and limited medical services for certain noncitizen populations — an activity that is explicitly permitted under federal law.
Furthermore, OHA stated that CMS itself has since acknowledged that the figure cited by Oz is “significantly less” than what remains under review, contradicting his public claim.
Legal Context: What Medicaid Allows
Federal law prohibits the use of Medicaid funds for comprehensive coverage of undocumented immigrants. However, states are required to provide emergency medical services to all individuals in life-threatening situations, regardless of immigration status.
This includes treatment for conditions such as childbirth complications, heart attacks, or other emergencies.
Oregon officials emphasized that none of the state’s Medicaid spending has violated these rules. They clarified that while most undocumented residents are ineligible for full Medicaid benefits, some groups, including refugees, international students, and people with work visas, qualify for limited federally funded services under specific programs.
Oregon Officials Condemn Political Spin
The OHA criticized Oz’s statements as part of a broader attempt to politicize public health and mislead the public about Medicaid’s purpose.
“At a time when hard-working families across the country are facing real uncertainty and rising premiums, it is disheartening to see misinformation used to politicize public health,” the agency wrote.
The agency added that Oregon remains committed to “responsible stewardship of public resources” while protecting access to care for more than 1.4 million residents enrolled in the state’s Medicaid program.
“Oregon is proud of our work to protect access to care, and we’ll continue to defend our programs from harmful rhetoric that distracts from real challenges like hospital closures, workforce shortages, and federal funding cuts so that all Americans can thrive,” OHA stated.
A Broader Political Debate
The dispute highlights an ongoing national debate over the use of Medicaid funds and state programs that expand healthcare access to undocumented residents.
While Oregon, California, and several other states have launched state-funded health coverage initiatives for undocumented adults, these programs are funded entirely with state dollars, not federal Medicaid money.
Public health experts note that misinformation surrounding these programs often conflates state-funded initiatives with federal Medicaid expenditures, leading to confusion and politically charged accusations like the one Oz made.
As of now, no evidence supports the claim that Oregon or any of the other states named have misused federal Medicaid funds.
OHA says it will continue cooperating with CMS on the audit and remains confident the review will confirm that Oregon’s Medicaid spending complies fully with federal law.
