Republican Candidate Highlights Medicaid Fraud Issues

Saritha Komatireddy, a candidate for New York’s attorney general, is centering her campaign around the issue of Medicaid fraud. She claims prosecutions have significantly declined since Letitia James took office.

This topic has recently gained traction in Minnesota, where investigations revealed billions in suspected fraud pertaining to the public assistance program. The situation led the Trump administration to prioritize the crackdown on such fraud, with federal efforts spearheaded by Vice President J.D. Vance. Across the nation, Republican candidates—especially in New York—are calling for more action on Medicaid fraud, insisting states must do better in recovering taxpayer funds.

In a recent interview, Komatireddy criticized James for her lack of aggressive prosecution, suggesting that taxpayers could be losing out on hundreds of millions in recoveries.

“There’s been a complete failure in prosecuting Medicaid fraud, which is evident from the record of Letitia James and her Democratic predecessors,” said Komatireddy. “This shouldn’t be a partisan issue.”

Calls for Independent Investigations

According to Komatireddy, Medicaid fraud recoveries in New York have dropped significantly under James, from $168 million in 2019 to just $31 million in 2024. This decline is based on annual reports from the New York State Attorney General.

Historically, New York has been a leader in recovering funds from Medicaid fraud. Under former Attorney General Eliot Spitzer, recoveries reached $243.6 million in 2006, while Andrew Cuomo’s administration brought in recoveries over $660 million in his first three years. Even his successor, Eric Schneiderman, managed to recover over $335 million in 2012, a record for the department.

“Even his Democratic predecessor brought in $200 million to $300 million annually. Once Tish James took over, she just seemed to decide not to pursue that part of the job,” Komatireddy remarked.

Ongoing Decline in Recoveries

The amount recovered from Medicaid fraud in New York has seen a yearly decline during James’s tenure. As a result, spending on fraud recovery programs has also decreased. It rose, however, from around $45 million in fiscal 2020 to $70 million in 2025.

Komatireddy mentioned that the number of annual criminal convictions for Medicaid fraud has sharply reduced. “Previously, the Attorney General’s Office would see around 100 convictions a year—I mean, there was a year when James had only eight,” she said.

Federal attention has been drawn to New York’s approach to Medicaid fraud. Earlier this year, CMS Administrator Dr. Mehmet Oz sent a letter to Governor Kathy Hochul asking for details on the state’s vetting processes for healthcare providers and fraud prevention measures. This review is said to aim at protecting Medicaid recipients and ensuring public confidence in the program; New York was among only three states to receive such a letter, along with California and Minnesota.

Consequences for Taxpayers

Komatireddy warns that cuts in enforcement will likely lead to higher healthcare costs for New Yorkers, as well as less money for other vital state projects. “The taxpayers will end up paying the price because, when Medicaid is misused, healthcare costs go up,” she noted. “If we lose $1 billion during her term, that’s money that could be returned to taxpayers.”

Instead, she argues, lawmakers may be forced to look for alternative tax revenue.

“The people in Albany seem to keep finding new ways to squeeze more money from taxpayers,” she added. “An attorney general who actively prosecutes wrongdoing could help us avoid tax hikes.”

Komatireddy promises to bolster the Medicaid fraud enforcement unit by adding 20 criminal prosecutors. As a former federal prosecutor with over a decade of experience in the U.S. Attorney’s Office and as chief of staff at the DEA, she emphasizes the election as a choice between a dedicated law enforcement professional and an ineffective incumbent.

“We need to do the job of the attorney general,” she stated. “That definitely includes prosecuting crimes and fraud.”

The New York Attorney General’s Office has not responded to requests for comment regarding these allegations.