The Republican-controlled House Committee on Energy and Commerce has expanded its Medicaid fraud investigation to Oregon, sending a nine-page letter to Governor Tina Kotek and Oregon Department of Human Services Director Liesl Wendt demanding detailed information about fraud prevention in the Oregon Health Plan. The letter, signed by the chairs of the committee and its Oversight and Investigations and Health subcommittees, requests information on the state's criminal referral procedures, screening and data collection methods, improper payment rates, and actions taken to detect illegal activity. State leaders were given two weeks to respond — a deadline falling around March 24, 2026.

Oregon is one of ten states targeted in the probe, alongside California, Colorado, Massachusetts, Maine, Nebraska, New York, Pennsylvania, Vermont, and Washington — all of which expanded Medicaid under the Affordable Care Act starting in 2014, and all except Nebraska are controlled or led by Democrats. The investigation stems from alleged large-scale Medicaid fraud in Minnesota, where the Trump administration took the unprecedented step of cutting off federal Medicaid funding to the state entirely. Minnesota filed a lawsuit to block the funding reduction. The committee's letter cited Oregon-specific fraud cases including a $1.5 million identity theft scheme involving addiction counseling, a nearly $500,000 urgent care chain settlement, and a data breach affecting 5,000 CareOregon members.

The probe's implications for Oregon's healthcare infrastructure are significant. The Oregon Health Plan covers approximately 1.4 million people — more than one in three Oregonians — and is administered through 16 coordinated care organizations statewide. OHA maintains that it processes 55 to 60 fraud referrals per month and has opened approximately 250 audits in the last two years. But the federal scrutiny arrives at a vulnerable moment: the state is simultaneously grappling with HR 1's new work requirements and twice-yearly eligibility checks, which OHA says will require dozens of new staff positions and major IT investments. Any federal finding of insufficient fraud controls could be used to justify further funding restrictions or enhanced oversight.

Watch for Oregon's formal response to the committee, due around March 24. Monitor whether the probe escalates to a Minnesota-style funding cutoff threat — Oregon's Rep. Cliff Bentz sits on the Energy and Commerce Committee but has not commented publicly. Track how the investigation interacts with HR 1 implementation, as the new eligibility verification requirements could either surface more improper enrollments or create administrative chaos that makes fraud harder to detect. This is the second time in nine months that congressional Republicans have demanded OHP information from state leaders, signaling sustained federal pressure on the program.