Vivek Ramaswamy / Wikimedia commons
Republican gubernatorial nominee Vivek Ramaswamy announced a plan earlier this week to combat Medicaid waste, fraud and abuse in Ohio through increased enforcement, administrative reforms and changes to federal-state funding incentives.
Ramaswamy unveiled the proposal during a press conference in Columbus alongside Ohio Senate President and lieutenant governor candidate Rob McColley, Ohio House Speaker Matt Huffman, Ohio Auditor of State Keith Faber and Daily Wire reporter Luke Rosiak, whose recent reporting examined alleged Medicaid fraud in the state.
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The proposal centers on three reforms: changing federal-state financial incentives tied to Medicaid fraud recovery, reducing administrative complexity within Ohio’s Medicaid system and prioritizing Medicaid fraud prosecution at the state level.
“Fraudsters and corrupt providers are stealing resources away from vulnerable Ohioans and driving up healthcare costs for everyone else,” Ramaswamy said.
“As Governor, I will work with state and federal leaders to make fighting Medicaid fraud a top priority, strengthen enforcement, simplify the bureaucracy and return the savings to Ohioans through lower healthcare costs,” he added.
According to the campaign, Ohio currently retains less than 35 cents of every dollar saved through Medicaid fraud enforcement because of existing federal reimbursement rules.
Ramaswamy said he would seek approval from the federal Centers for Medicare & Medicaid Services for a time-limited demonstration project that would allow Ohio to retain at least 65 cents of every dollar recovered through fraud detection and prosecution efforts.
The campaign said the proposal is modeled in part on a Tennessee waiver program that redirected savings toward healthcare priorities. It estimated that a 10 percent reduction in Ohio Medicaid spending in fiscal year 2027 could generate approximately $4.7 billion in taxpayer savings, including about $3.1 billion that could be used to lower healthcare costs through measures such as co-pay assistance, lower insurance premiums and expanded Health Savings Account benefits.
Ramaswamy also proposed consolidating and simplifying Medicaid administration, arguing that the current system—which the campaign said could involve up to 10 state entities overseeing approximately $47 billion in Medicaid funding by fiscal year 2027 create inefficiencies and opportunities for fraud.
The plan further calls for coordination with the Ohio Attorney General’s office to make Medicaid fraud prosecution a statewide enforcement priority. Ramaswamy said his administration would also pursue stronger front-end safeguards aimed at preventing fraudulent payments before funds are disbursed.
“Ohio should lead the nation in building a Medicaid system that is accountable, enforceable and focused on the people it was created to serve,” Ramaswamy said. “As your next governor, that is exactly what I will fight to deliver.”
The campaign said Ramaswamy has already held discussions with federal officials, including Centers for Medicare & Medicaid Services Administrator Mehmet Oz, regarding possible implementation of the plan if elected governor in 2026 and inaugurated in January 2027.
The policy rollout coincided with the release of a new campaign advertisement titled “Afford to Get Better,” focused on healthcare affordability in Ohio.
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