Medicare fraud represents a significant threat to both taxpayer funds and individuals' personal identities, costing an estimated $100 billion annually, according to Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMS). Oz highlighted that this issue has become more acute since the COVID-19 pandemic.
"If I had to just pick one thing to focus on to make healthcare more affordable in America, I'd go to health fraud and all the waste and abuse that accompanies it," Oz stated in a July 6 interview with Fox News Digital. He emphasized that every dollar lost to Medicare fraud is a direct loss for taxpayers.
Types of Medicare fraud, as outlined by the U.S. Government Accountability Office, include billing for services never rendered, overcharging for medical equipment, and using stolen patient or doctor information for illicit purposes. The CMS reported significant program integrity savings in recent years, with $41.9 billion in Medicare program integrity savings in 2025, an increase from $26.3 billion in 2024.
Beyond the financial implications for the federal budget, Medicare fraud puts seniors at risk of identity theft, unnecessary medical procedures, higher premiums, and reduced access to care. Oz noted that a substantial portion of this fraud is perpetrated against older Americans.
"I'm talking about people tricking seniors to give up their Medicare beneficiary numbers, which is like a credit card basically," he explained. "These scammers can take those numbers and use them for all kinds of illegitimate purposes."
To combat these schemes, Oz offered critical advice for seniors: Do not share Medicare beneficiary numbers with unsolicited callers, do not answer questions from unknown individuals over the phone, and refrain from providing personal information to anyone seeking it under false pretenses. He warned that once scammers obtain key information, they can exploit it without the victim's immediate knowledge.
Oz asserted that eliminating fraud from the healthcare system would have a profound impact, particularly for seniors who are frequent targets. He suggested that removing fraud could potentially double the solvency of the Medicare trust fund, ensuring its availability for future generations.
"If you're worried about Medicare being there when you're ready to retire in a couple decades... and you're concerned that it might not last because of all the fraud that's hitting it... you've got a good [reason to] worry," Oz said. "If we take the fraud out, we could double the life expectancy, which means you, your kids, your kids' kids ... they could all benefit from this beautiful safety net program."