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Trump Admin Targets Medicare Fraud After 7,100% Surge In Transplant Claims
The Trump administration says it has uncovered a dramatic increase in Medicare claims for tissue and organ transplants, resulting in a broad crackdown on suspected fraud that officials say has already blocked hundreds of millions of dollars in questionable payments.
Administration officials said Medicare claims for tissue and organ transplants, known as allografts, climbed from $200 million in 2019 to $14.4 billion in 2025—a 7,100 percent increase.
The surge led the White House Anti-Fraud Task Force, headed by Vice President JD Vance, and the Centers for Medicare and Medicaid Services to intensify their review of claims. Since March, the agency has denied 96 percent of allograft claims identified during the review.
CMS Administrator Mehmet Oz said the agency identified 4,200 potentially fraudulent allograft claims totaling $224 million through May.
“That’s a lot of money,” Oz said during a Wednesday news conference in Milwaukee.
“And that bankrupts not just hospital systems and physician groups, but it causes major problems across the entire landscape.”
The agency also announced enforcement actions involving Durable Medical Equipment (DME) including wheelchairs, walkers, hospital beds and other medical equipment.
According to CMS, payments have been suspended to 102 suppliers, while billing privileges have been revoked for another 725 suppliers. The agency said those suppliers accounted for 8.6 percent of all Medicare-funded DME in 2025.
CMS officials reported they identified suspected fraud involving claims for equipment that was not medically necessary or ordered, equipment that was more expensive than prescribed, and equipment that was never delivered.
“In just six months, the task force has effectively wiped out Durable Medical Equipment fraud in America,” a spokesperson for Vance’s office said.
“After the vice president and Dr. Oz announced a moratorium on new DME companies, paired with aggressive enforcement actions by DOJ and HHS, this kind of fraud has effectively ended.”
Oz said the administration’s efforts have already prevented significant losses.
“Thanks to the whole-of-government approach spearheaded by the White House Anti-Fraud Task Force, we stopped nearly $220 million in fraudulent skin substitute claims and suspended or revoked billing privileges for over 800 DME suppliers,” Oz told Fox News Digital. “We are keeping our promise to the American people: we will root out corruption, protect vulnerable patients, and hold every bad actor accountable.”
Oz also warned those engaged in health care fraud that the administration intends to continue its enforcement campaign.
“To anyone out there, and I’m talking to you if you’re a fraudster, for anyone out there who thinks they can get away by stealing from the American people, especially American patients, I’ve got a bit of advice for you: Do not walk away from this press conference. Don’t walk away from us. You start running because the vice president and this task force are coming after you,” Oz said.
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US, Japan, And South Korea Push SMR Exports For "Energy Security Needs"
The American nuclear buildout is not just about the climate or powering data centers. It's a geopolitical war against the export of nuclear technology from Russia and China, mixed with a new demand for national energy security.
On the sidelines of the NATO Summit in Ankara, the United States, Japan, and South Korea signed a trilateral Memorandum of Cooperation aimed at accelerating small modular reactor (SMR) deployments in other countries, with an initial focus on the Indo-Pacific. The agreement is designed to bring together the complementary strengths of the three countries’ civil nuclear industries.
The US State Department also notes, “The MOC advances our mutual security interests and paves the way for partner countries to meet their energy security needs.”
In addition to deploying reactors in the Indo-Pacific, the initiative is also supported by the U.S. committing over $10 million in new funding to the State Department's Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology (FIRST) Program.
Lastly, the U.S. also announced an industry initiative agreed upon with GE Vernova and their partner Hitachi, with Samsung C&T and SGE to deploy the BWRX-300 SMR in Europe.
The U.S. is continuing its trend, started after the executive orders were signed last year, of deploying American nuclear technology in foreign countries. In the executive orders, the State Department was directed to renew or start 20 civil nuclear cooperation agreements, sometimes referred to as “123 Agreements”.
The goal is to strengthen U.S. political ties with allies and other countries in Europe and Asia by supporting those countries' domestic energy security needs.
The reactor export story also has a fuel-chain counterpart. More allied SMR deployments would eventually require more allied fuel supply, and that is where companies like Centrus Energy and General Matter become relevant.
Centrus already has a direct South Korea connection. In 2025, Centrus announced that it had expanded its agreement with Korea Hydro & Nuclear Power and POSCO International, including higher low-enriched uranium supply volumes tied to new enrichment capacity at the American Centrifuge Plant in Ohio.
The supply commitment remains contingent on Centrus receiving the necessary federal funding to build that capacity, but as we clearly identified just last week, Centrus should reasonably expect to receive whatever financial support they ask for from the federal government at this point.
General Matter adds another piece to the same puzzle. In March, the Export-Import Bank of the United States issued Letters of Interest supporting up to $4.2 billion in potential financing for nuclear fuel sales by General Matter to nuclear power operators in Japan and South Korea.
The new US-Japan-Korea framework does not name a reactor developer, but it can be reasonably expected that GE Vernova (GEV) will lead the pack given its connection to all three countries. The framework does create a backdrop for additional US-aligned advanced reactor developers trying to work with Asian industrial partners.
NANO has already started building that lane in South Korea. In January, the company signed an MOU with DS Dansuk to advance potential deployment of its KRONOS MMR system in South Korea. Under the agreement, DS Dansuk is expected to help with site identification, supply-chain localization, regulatory engagement, and institutional partnerships.
Tyler Durden Thu, 07/09/2026 - 16:40