A 12-figure program was at the center of a federal probe as Dr. Mehmet Oz sought answers on some 50 questions from New York Gov. Kathy Hochul (D) regarding Medicaid “fraud, waste, and abuse.”
Minnesota may have the spotlight, but it is hardly the only state facing scrutiny over the distribution of U.S. taxpayer dollars. Given the Empire State’s Medicaid spending that far exceeds national averages at $124 billion, Centers for Medicare & Medicaid Services (CMS) Administrator Oz launched a probe providing the governor and her administration 30 days to explain or face “corrective action.”
“It is time for New York to come clean about its Medicaid program. Today, I sent a letter to Governor Hochul demanding answers and detailed documentation about the state’s fraud detection, program integrity infrastructure, managed care oversight, and corrective actions,” said the official as he shared a video message along with the letter.
“Protecting beneficiaries and ensuring proper stewardship of Medicaid funds remain central to the federal-state partnership, and we at CMS stand ready to eradicate the fraud, waste, and abuse happening in New York,” continued Oz. “Governor Hochul and her team have 30 days to respond to our request. If we’re not satisfied with their response, we will take corrective action.”
🚨 It is time for New York to come clean about its Medicaid program.
Today, I sent a letter to Governor Hochul demanding answers and detailed documentation about the state’s fraud detection, program integrity infrastructure, managed care oversight, and corrective actions.… pic.twitter.com/l2YciRlyCM
— DrOzCMS (@DrOzCMS) March 3, 2026
In addition to Hochul, the letter was addressed to the state’s Department of Health Commissioner James McDonald and Medicaid Director Amir Bassiri, as well as acting Medicaid Inspector General Frank Walsh, Jr.
“The data is clear, New York far outspends other states on its Medicaid program on a statewide and per beneficiary basis,” the missive outlined, detailing an excess of 36% over the national average, with spending at $12,528 per beneficiary and per resident spending about 80% greater than the rest of the country.
“These elevated costs reflect a combination of more New Yorkers enrolled in Medicaid relative to the state’s population, potential fraud, expansive benefit structures, and excessive provider payment levels within New York’s program compared with most other states,” stated Oz.
He went on to call out examples of known fraud, including $68 million worth committed with “claims for services not provided at Brooklyn-based adult day care centers and illegal kickbacks and bribes as a fiscal intermediary for the New York Medicaid Consumer Directed Personal Assistance Program (CDPAP)” in addition to a home health aide fraud scheme.
“These cases expose ongoing program integrity vulnerabilities within the New York State Medicaid program and home and community-based service delivery system that warrant structural program-integrity measures given the scale of such services,” added Oz.
Among the requests, the letter sought a list of all currently enrolled New York State Medicaid providers “regardless of investigation status,” and sought details on what, if any, oversight had been employed pertaining to adult day care services, behavioral health services, and others.
In response to the letter, the governor’s office expressed in a statement, “Well, before the Trump administration even took office, Governor Hochul was leading efforts to root out waste, fraud and abuse — including sweeping CDPAP reforms that shut down hundreds of wasteful Medicaid middlemen and saved over $2 billion for state and federal taxpayers while protecting home care for those who need it.”
“New York will continue to work with the federal government to identify bad actors, just as we did when we partnered with the Justice Department on the successful investigation cited in this letter,” it continued.
As it happened, that effort was expected to be the basis of an intended lawsuit from the Department of Justice, as the New York Post reported on a probe surrounding allegations of “bid rigging and non-compliance” in putting one company in charge.
That didn’t stop the administration from spinning out an attack on the president, adding, “But let’s be clear about the real goal for Donald Trump and Washington Republicans: eliminating programs that support our most vulnerable and ripping away healthcare from everyday New Yorkers.”
Native of Brooklyn, NY, Kevin Haggerty is a graduate of Hunter College where he studied Cultural Anthropology and Geography. An avid reader and truth seeker, he currently resides in Texas with his wife and their dog and, when he isn't researching current events and their impacts, you'll find him spending time with friends and family or working on his next novel.
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