Trending Now - Medicaid Fraud Investigations Intensify in New York

WHO:

President Donald Trump, Administrator Dr. Mehmet Oz (Centers for Medicare and Medicaid Services), New York Governor Kathy Hochul, New York City Mayor Zohran Mamdani, Minnesota Governor Tim Walz.

WHAT:

The Trump administration is expanding its crackdown on Medicaid fraud in New York.

Dr. Mehmet Oz sent a letter to Governor Hochul with 50 questions regarding New York's Medicaid program.

Hochul has 30 days to respond to the inquiries or risk deferred payments.

New York's Medicaid program costs over $100 billion annually, the second highest in the nation.

Average spending per Medicaid beneficiary in New York is over $12,500, which is 36% higher than the national average.

5 million beneficiaries, nearly three out of four enrollees, received personal care services last year.

Home health aide payments increased by 65% year over year twice in a row.

Adult daycare spending spiked by more than 100% in the last three months.

A $68 million alleged fraud scheme involving kickbacks at adult care centers was identified.

The Trump administration previously froze nearly $260 million in Medicaid funding in Minnesota over similar fraud accusations.

WHERE:

New York State, United States.

WHEN:

The letter from Dr. Oz to Governor Hochul was sent on Tuesday, March 3, 2026.

The Medicaid program cost $115.6 billion in the 2025 fiscal year.

The investigation follows a funding freeze in Minnesota announced in late February 2026.

WHY:

The investigation is part of an initiative to address fraud, waste, and abuse in state Medicaid programs.

Concerns were raised about New York's oversight of personal care, home health, adult day care programming, non-emergency medical transportation, and behavioral health services.

HOW:

The Trump administration is demanding detailed information from New York state officials regarding their handling of Medicaid fraud.

The investigation is part of a broader effort to rein in spending and protect taxpayers, as stated by Dr. Oz.

President Trump is intensifying efforts to combat Medicaid fraud in New York, with Dr. Mehmet Oz sending a letter to Governor Kathy Hochul containing 50 questions about the state's Medicaid program, which costs over $100 billion annually. Hochul has 30 days to respond to these inquiries or face deferred payments, as concerns grow over the state's oversight of personal care and other health services. This investigation follows a recent funding freeze in Minnesota due to similar fraud issues, highlighting a broader initiative by the Trump administration to address waste and protect taxpayer dollars.