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Trump Administration

EMPIRE AUDIT: Dr. Oz Out to Expose Waste, Fraud, and Abuse in New York's $124B Medicaid Program: Report

posted by Hannity Staff - 3.03.26

According to a New York Post report, Dr. Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, is launching a sweeping probe into the Empire State’s $124 billion Medicaid program, turning up pressure on Gov. Kathy Hochul and her administration.

In a letter sent Tuesday, Oz fired off 50 pointed questions demanding details about cost controls, fraud prevention and oversight of provider enrollment.

“I am formally requesting detailed information regarding program integrity and provider screening and enrollment oversight within New York’s Medicaid program. This request is necessary to ensure public confidence and protect beneficiaries in your state’s Medicaid program,” Oz wrote.

Medicaid, jointly funded by federal, state and local governments, provides health coverage for low-income Americans. But Oz argues New York’s program stands apart for all the wrong reasons.

“The data is clear. New York far outspends other states on its Medicaid program on a statewide and per beneficiary basis,” he said.

According to the letter, New York spends an average of $12,528 per Medicaid beneficiary, 36 percent above the national average. Average Medicaid spending per resident is nearly 80 percent higher than the national norm.

Oz said those elevated costs stem from higher enrollment relative to population, expansive benefits, generous provider payments and what he described as potential fraud.

More than 6.8 million New Yorkers, roughly 34 percent of the state’s population, are currently enrolled in Medicaid.

Oz highlighted growth in home care, adult day care and personal care programs as major cost drivers. He also pointed to recent criminal cases, including Brooklyn operators who admitted to stealing $68 million through fraudulent home care billing and a separate scheme involving 10 defendants accused of billing for services never provided.

“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,” Oz said.

The move signals a more aggressive federal posture toward states with ballooning Medicaid rolls and rising costs. For Hochul, it means answering tough questions from Washington as scrutiny intensifies over whether taxpayers are getting value for every dollar spent.

Oz, along with Vice President JD Vance, teed up this announcement last week during a White House presser; “We’re very concerned about New York,” Oz said.

Watch the clip below:

More over at The New York Post: