US Freezes Part Of Minnesota Health Funds Over Fraud Probe

WASHINGTON, Feb 26 (Bernama-dpa) -- The US administration is escalating pressure on Minnesota over a fraud scandal involving social welfare funds by temporarily freezing part of the state's federal funding for its Medicaid health programme, German Press Agency (dpa) reported.

Vice President JD Vance said on Wednesday that a portion of federal support for Minnesota's Medicaid programme for low-income residents would be "temporarily" withheld. Mehmet Oz, who oversees the federal Medicare and Medicaid programmes, said some US$259 million would not be paid out for now.

The move follows allegations of inadequate oversight and what Vance described as the fraudulent use of taxpayer money. The Republican vice president also accused authorities in the Democratic-led state of failing to cooperate sufficiently with the federal investigation.

On Tuesday, US President Donald Trump tasked Vance with leading the probe. Trump alleged that members of the Somali community had misappropriated an estimated US$19 billion.

US media outlets including the New York Times have reported that suspected fraud so far amounts to several hundred million dollars. Minnesota Governor Tim Walz, a Democrat, has cited damages of US$250 million for part of the affected programmes.

Medicaid is jointly funded by states and the federal government. According to official figures, around 1.3 million people in Minnesota rely on the programme, with around 40 per cent of beneficiaries being children.

The programme also supports pregnant women, people with disabilities and the elderly. The US does not have universal health insurance coverage.

--BERNAMA-dpa