COLUMBUS, Ohio (WSYX) — Republican gubernatorial candidate Vivek Ramaswamy on Tuesday unveiled a proposal aimed at cracking down on Medicaid fraud in Ohio, arguing the effort could save taxpayers billions of dollars while lowering healthcare costs across the state.

Speaking alongside several Ohio Republican leaders, Ramaswamy said too much Medicaid funding is being lost to fraudulent claims and abuse within the system. He outlined a plan that would prioritize Medicaid fraud investigations, simplify the state’s Medicaid structure and seek federal approval allowing Ohio to retain a larger share of recovered fraud funds.

“When you have criminals, fraudsters, thieves, claiming money for themselves, it diverts money away from those for whom these programs were intended,” Ramaswamy said. “And that’s a problem.”

The proposal comes amid heightened scrutiny over alleged Medicaid fraud involving home healthcare companies in Columbus. A recent report by The Daily Wire alleged that nearly 300 home healthcare providers shared the same addresses while collectively billing more than $250 million in Medicaid funds between 2018 and 2024. The allegations have prompted investigations at both the state and federal levels.

Ramaswamy said his administration would make Medicaid fraud enforcement a major law enforcement priority.

“We will make the prosecution, including the investigation of Medicaid fraud, a top law enforcement priority in the state,” he said.

Under the current system, Ohio reportedly recovers less than 35 cents for every dollar saved through Medicaid fraud enforcement. Ramaswamy said he wants to negotiate with the federal government to allow Ohio to keep a larger share of recovered funds, citing Tennessee’s TennCare program as a model.

“Through their TennCare program, Tennessee has delivered $1.3 billion in savings that have gone right back into the pockets of people who live in Tennessee,” he said.

Ramaswamy’s campaign estimates that reducing Ohio Medicaid spending by 10% could save taxpayers billions of dollars by 2027. He said those savings could help lower insurance premiums, expand health savings accounts and reduce out-of-pocket healthcare costs for Ohio residents.

Democrats, however, criticized the proposal, warning it could serve as a pathway to broader Medicaid cuts.

Democratic gubernatorial candidate Amy Acton did not respond to a request for comment before news time. However, in a recent Facebook post, Acton accused Ramaswamy of using fraud concerns to justify potential reductions in Medicaid coverage.

“Vivek Ramaswamy called Medicaid a ‘mistake’ and now wants to pretend he cares about Medicaid fraud while standing with the members who have done nothing about corruption, waste, fraud, and abuse in our statehouse for decades,” Acton wrote. “The corruption ends with me as governor.”

The exchange highlights how Medicaid policy is emerging as a central issue in Ohio’s gubernatorial race, with Republicans emphasizing fraud prevention and Democrats warning against cuts to healthcare access.