The $124 billion Medicaid system funded by New York City taxpayers is facing significant issues with fraud and waste, according to U.S. regulator Dr. Mehmet Oz. He mentioned that federal investigators are currently looking into the matter.
“There are certainly many individuals in our lovely city of New York, and throughout New York State, providing services that we suspect are illegal and costing taxpayers a significant amount,” Oz, who leads the U.S. Centers for Medicare and Medicaid Services, shared during a radio interview on 77WABC’s “Cats Roundtable.”
He continued, emphasizing that this situation not only impacts taxpayers but also affects vulnerable individuals who desperately need these services.
Oz pointed out that fraud in programs like Medicaid is draining resources and making it harder to keep these systems affordable.
He did not go into specifics, but reports indicate that his office is scrutinizing various components of New York’s extensive Medicaid program, which supports approximately 6.8 million residents.
Medicaid is intended to provide health insurance for those in need, and New York boasts one of the most comprehensive programs in the country, covering hospital services, nursing care, and the increasingly important home care sector in light of an aging population.
Currently, over 6.8 million New Yorkers, roughly 34% of the state’s populace, qualify for Medicaid.
A recent federal audit highlighted that New York drivers might have improperly claimed up to $196 million from a poorly managed Medicaid transportation program, with rides that allegedly didn’t meet the necessary requirements.
This amount was funneled to businesses participating in the Non-Emergency Medical Transportation Program.
Additionally, reports have surfaced regarding New York potentially losing $1.2 billion due to fraudulent activities associated with the Consumer Directed Personal Assistance Program, along with spending up to $400 million annually on adult day care centers that often duplicate what senior centers offer.
Both of these programs were restructured during the tenures of former Governor Andrew Cuomo and his successor, Kathy Hochul.
In defending the management of the Medicaid program, Hochul’s office stated, “Before this federal government assumed office, Governor Hochul enacted significant reforms to CDPAP in 2024, closing numerous wasteful Medicaid intermediaries and saving state and federal taxpayers over $2 billion last year.”
They added, “Governor Hochul is committed to eradicating waste, fraud, and abuse. If Dr. Oz is genuinely concerned about affordability, he should advocate for keeping healthcare accessible for everyday New Yorkers.”
