New York’s $124 billion Medicaid program is under Dr. Mehmet Oz’s magnifying glass — the latest development in the Trump administration’s “war on fraud” initiative.
The administrator for the Centers for Medicare & Medicaid Services wrote Tuesday to Gov. Kathy Hochul about waste, fraud and abuse in her state’s Medicaid program, first reported by the New York Post.
New York’s average spending per Medicaid beneficiary is $12,528, which he said is 36% higher than the national average.
The average Medicaid spending per resident is also nearly 80% higher than the national average, he said.
“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,” Dr. Oz said.
He cited the increase in those helping senior New Yorkers in home care, adult day care and personal care programs, as well as fraud unearthed by the Justice Department.
Dr. Oz requested information on program integrity, provider screening and enrollment oversight, plus asked dozens of questions about proactive measures to control costs and identify and prevent fraud.
“This request is necessary to ensure public confidence and protect beneficiaries in your state’s Medicaid program,” he wrote in the letter, also sent to state Health Commissioner James McDonald, state Medicaid Director Amir Bassiri and acting Medicaid Inspector General Frank Walsh Jr.
This comes after President Trump elevated a broader “war on fraud” initiative with Vice President J.D. Vance and Dr. Oz at the forefront.
Dr. Oz launched similar probes in California and Minnesota — the latter of which came after allegations of fraud involving day care centers run by Somali residents in Minneapolis, leading to a sweeping immigration operation in the city.
Mr. Vance and Dr. Oz announced that the Trump administration would temporarily withhold roughly $259 million in federal Medicaid reimbursements to Minnesota, prompting pushback via a state lawsuit to block the funding cut that argues it lacks a legal basis and will disrupt essential services.
Previously, Dr. Oz signaled a health care fraud investigation targeting hospice and home health services in California, in turn leading to Gov. Gavin Newsom filing a civil rights complaint alleging discriminatory targeting.
