Oklahoma Attorney General Gentner Drummond is investigating the Health Care Authority’s handling of alleged fraud after the state Medicaid agency announced it recently uncovered an international crime ring believed to have fraudulently enrolled thousands of Oklahomans in Medicaid.
The Health Care Authority announced Thursday afternoon it received reports of this activity from its contracted managed care organizations. A few years ago, the agency went from paying providers directly to paying these private insurance companies to coordinate some enrollees’ care.
Interim Director Aaron Morris, who recently joined the agency after its previous director left nine months into his term, said the Health Care Authority has begun disenrolling individuals fraudulently enrolled and is working with the Centers for Medicare and Medicaid Services to ensure compliance with federal regulations.
This incident impacts Medicaid managed care, or SoonerSelect, and fee-for-service Medicaid, or SoonerCare, a Health Care Authority spokesperson said. The precise location and identity of those responsible remain under investigation.
“We caught the problem early enough to minimize fraudulent usage and ensure there was no cost to taxpayers,” Morris said. “We are continuing to work with state and federal partners to quickly address this situation and tighten our vetting processes to ensure that all Medicaid enrollees are actually eligible for these services.”
On Thursday evening, Drummond announced his investigation into the agency’s handling of alleged fraud within the state’s Medicaid managed care program. He said in a news release the agency didn’t report this incident to his office.
“Medicaid exists to protect Oklahoma's most vulnerable residents, not to become a target for international fraud rings,” Drummond said. “When my office is not notified in a timely manner that thousands of fraudulent accounts were opened inside our state's Medicaid program by foreign actors, that's not a paperwork failure. It's a breakdown in OHCA administration.”
Drummond’s scrutiny of Oklahoma’s Medicaid managed care program dates back to an October 2025 letter he sent to the Health Care Authority’s previous agency head, Clay Bullard. In it, he argued that small, community-based providers caring for Oklahoma’s children are “being squeezed financially so that out-of-state corporations can profit.”
In April, Drummond requested an independent audit of the agency, citing several concerns gathered from “mounting provider complaints.” Those include payment delays, administrative barriers to claims processing, incorrect or inconsistent reimbursement determinations and claim denials for medically necessary equipment.
Gov. Kevin Stitt’s Deputy Chief of Staff Abegail Cave said in a statement the agency did the right thing by reporting fraud directly to the federal government instead of the attorney general’s Medicaid Fraud Control Unit. These units investigate and prosecute Medicaid fraud, abuse, neglect and exploitation of patients by providers and facilities.
Cave said Oklahoma’s unit is being audited by the Trump administration “for lack of enforcement.” The audit is one the Trump administration is conducting of every state’s Medicaid Fraud Control Unit to determine if they are fulfilling statutory functions and responsibilities.
“Once again, the AG is trying to confuse you,” Cave said. “Not one taxpayer dollar was wasted and they are removing the fraudulent enrollees as we speak. Proud of the quick action by OHCA.”
Drummond said Oklahomans who believe they were affected can submit an online Medicaid Enrollment Fraud Report to help his office identify victims and gather information. The Health Care Authority spokesperson said the agency will also provide an online form to assist individuals in reporting fraudulent activity.
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