Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services (CMS), has announced a new federal mandate requiring states to overhaul their verification processes for medical providers. Speaking at a Politico health care summit on Tuesday, Oz detailed a plan that asks states to develop strategies within the next month to revalidate providers operating in what the administration deems “high-risk” areas.
The initiative is designed to confirm that entities receiving federal funds are not only legitimate but possess the legal right to provide services. By tightening the oversight of provider rolls, the administration aims to identify "ghost" clinics and fraudulent billing practices that have long plagued government-funded programs. This move represents a significant administrative shift, placing the burden of verification more squarely on state-level infrastructure.
This latest directive fits into a broader, highly publicized campaign by the Trump administration to target waste, fraud, and abuse in the federal health care system. However, the effort has already sparked political friction. Previous federal claims of systemic fraud have frequently centered on Democrat-led states, such as Minnesota and California—assertions that have been repeatedly disputed by state leaders who argue the administration’s focus is more ideological than actuarial.
With reporting from STAT News.
Source · STAT News (Biotech)
