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Oregon Rebuts CMS Claim It Misused $5.4 Million in Medicaid on Undocumented Care

State officials call the figure inaccurate, describing an open audit that misreads emergency Medicaid rules.

Overview

  • CMS Administrator Mehmet Oz said a preliminary review found more than $1 billion in improper Medicaid spending across several jurisdictions and alleged $5.4 million in Oregon.
  • Oregon’s health authority calls the allegation categorically false and says CMS has acknowledged the cited amount does not match the funds still under review.
  • State officials say the questioned spending involves federally allowed emergency Medicaid services and approved operational costs, not routine coverage for people lacking legal status.
  • CMS demanded detailed enrollee data as part of its intensified oversight, Oregon initially resisted on privacy grounds, and a federal judge later barred CMS from sharing Medicaid data with immigration authorities.
  • Oregon funds broader coverage for residents who do not qualify under federal rules through the state-paid Healthier Oregon program, while federal Medicaid covers emergency care regardless of immigration status.