Oregon State Rep. Dwayne Yunker, a Republican serving in a Democrat supermajority legislature, has raised concerns over questionable Medicaid expenditures in his state, highlighting how taxpayer dollars are being allocated.
Yunker discovered that programs serving developmentally disabled clients were being used for outings that appeared unrelated to healthcare, including trips to bars and strip clubs.
The issue came to Yunker’s attention during the summer, prompting him to investigate how these expenditures could be justified.
The Oregon Department of Human Services reportedly told him that denying the strip club outing could put federal Medicaid funding at risk, citing rules designed to help disabled individuals integrate into the community, according to The Daily Signal.
“The adult day care [program] has taken developmentally disabled clients to strip clubs and bars,” Yunker said. “They say they are integrating them with the community. But we are not talking about taking them to a park or the museum.”
Yunker is scheduled to meet with members of Congress and Trump administration officials in Washington, D.C., to discuss Oregon’s Medicaid spending and potential patterns in other states.
Medicaid is a joint federal-state program designed to provide health coverage for low-income or disabled Americans.
Yunker supports Trump-era reforms, including work requirements under the One Big Beautiful Bill Act, aimed at improving accountability and ensuring funds are spent appropriately.
Further investigation by Yunker uncovered additional concerning expenditures.
In a letter sent to Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMS), Yunker noted that Oregon had allocated $2.3 million in Medicaid funds to an organization that housed a Venezuelan gang member charged with kidnapping and attempted murder.
Some reimbursements also covered procedures for minors.
CMS officials responded, clarifying that the state’s characterization of the strip club outing as federally required was inaccurate.
Caprice Knapp, principal deputy director of CMS, stated in a letter that “nothing in this or any other Medicaid regulation sanctions or requires taxpayer funding to be used for activities like those you uncovered in Oregon.”
Agency staff confirmed with the Oregon Health Authority and Department of Human Services that the activity was voluntary and not billed to Medicaid.
Yunker emphasized that Oregon is not unique.
“Oregon, California, and Washington are almost the same, each state is trying to one-up the other with how much of other people’s money they can spend,” he said.
Conservative policy experts agreed, noting that federal guidelines are sometimes misinterpreted or exploited to advance unapproved agendas.
Tony Woodlief of the State Policy Network said Yunker’s scrutiny is crucial to keeping programs accountable.
Oregon has also expanded Medicaid to cover illegal immigrants as of July 2023, using state funds for full healthcare coverage while also allowing temporary rental and nutrition assistance.
Gov. Tina Kotek, a Democrat, criticized federal reforms, warning that they could harm Oregonians’ health and economic well-being.
Yunker’s findings highlight the ongoing challenge of oversight in state Medicaid programs and underscore the importance of ensuring taxpayer dollars are directed toward legitimate healthcare needs.
Officials continue reviewing expenditures to guarantee compliance and prevent misuse.
