During an appearance on Fox News’ Saturday in America, Medicaid Services Administrator Dr. Mehmet Oz shared some of the Trump Administration’s shocking findings on fraud within the healthcare industry.
Oz joined the program specifically to discuss a recently sentenced Medicaid case in Brooklyn and Affordable Care Act enrollment figures in Florida.
According to the U.S. Attorney’s Office for the Eastern District of New York, Zakia Khan, 55, an adult daycare owner, paid kickbacks and bribes to Medicaid recipients so her Coney Island businesses, Happy Family and Family Social, could bill for services that were not provided. Prosecutors said the businesses billed Medicaid for about $64 million in claims between October 2017 and July 2024, of which about $56 million was paid.
Khan pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States. On Sept. 10, 2026, U.S. District Judge Natasha Merle sentenced her to 76 months in prison, ordered $56 million in restitution, and required forfeiture of about $5 million in assets, including property, cash, and jewelry seized from her home.
Undercover video evidence presented in the case showed Khan counting cash for an officer posing as a Medicaid client.
Oz used the case as an example of billing for services that were not delivered, a pattern CMS has also described in social adult daycare and related Medicaid programs in New York. In earlier remarks this month, he said CMS had already stopped about $42 billion in improper payments “just by not shipping the money out of the building,” and that Medicare and Medicaid were “experiencing about $100 billion of theft a year.”
He added, “If we could just take the fraud out of Medicare, we would double the life expectancy of the Medicare trust fund.”
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A new analysis estimates that ACA enrollment in the highest subsidy category exceeds the eligible population in nearly every Florida county — by more than 11 times in some areas.
And ACA enrollment fraud isn’t isolated to just FL. It’s a… pic.twitter.com/U9BCpRXiKi
— Dr. Oz CMS (@DrOzCMS) September 2, 2026
The Florida portion of Saturday’s interview focused on Affordable Care Act marketplace enrollment and stunning indicators of fraud. All in all, Oz stated that Florida “has five times more people on Obamacare in the free category” than the eligible population for that subsidy tier.
“A new analysis estimates that ACA enrollment in the highest subsidy category exceeds the eligible population in nearly every Florida county — by more than 11 times in some areas. And ACA enrollment fraud isn’t isolated to just FL. It’s a nationwide problem, and CMS is putting a stop to it,” Oz wrote in a recent social media post.
CMS has previously said marketplace integrity problems include applications lacking Social Security numbers, unauthorized broker enrollments, and payments tied to people who did not request coverage. Oz has framed the agency’s response as stopping payments before they leave federal accounts, using data analytics, enrollment reviews, payment suspensions, and provider revocations.
CMS has reported more than $41.9 billion in Medicare program-integrity savings in fiscal 2025.
