New York’s colossal $124 billion Medicaid initiative, funded by taxpayers, is reportedly plagued by fraud and inefficiency, according to Dr. Mehmet Oz, a prominent US regulator, who made this assertion on Sunday. Meanwhile, federal investigators are actively scrutinizing the situation.
“In both the magnificent city of New York and its surrounding state, we have identified numerous service providers whose legitimacy is questionable, resulting in significant financial burdens on taxpayers,” stated Oz, the director of the US Center for Medicare and Medicaid Services, during an appearance on 77 WABC’s “Cats Roundtable” show.
He further elaborated to host John Catsimatidis that this deception not only impacts taxpayers but also adversely affects vulnerable individuals who genuinely rely on these services.
Oz highlighted that fraudulent activities within these programs, particularly Medicaid, substantially inflate costs, undermining the financial sustainability of these essential systems.
While Oz refrained from detailing specific cases, an insider revealed to The Post that his office is actively examining various elements of New York’s extensive program.
Medicaid serves as a public health insurance option for low-income individuals, and New York’s program is among the nation’s most comprehensive, offering extensive coverage for hospital and nursing home services, as well as an expanding home-care sector, especially crucial given the state’s aging demographic.
More than 6.8 million New Yorkers — 34% of the state’s population — are currently covered by Medicaid.
As The Post recently reported, a 2022 federal audit accused New York drivers of swiping up to $196 million from a badly managed Medicaid transportation program through rides that “did not meet or may not have met Medicaid requirements.”
The money was paid to companies enrolled in the Non-Emergency Medical Transportation program.
The Post also recently uncovered how the state allegedly lost $1.2 billion in taxpayer money to scammers through the Consumer Directed Personal Assistance Program and how it spends up to $400 million a year on Social Adult Day Care centers, which mostly duplicate the offerings of senior centers.
Both of these programs, as with NEMT, were part of the former Gov. Andrew Cuomo-era Medicaid overhauls that have been continued by successor Gov. Kathy Hochul.
Hochul’s office defended the administration’s management of the Medicaid program.
“Before this federal administration even took office, Governor Hochul took action in 2024 with sweeping CDPAP [Consumer Directed Personal Assistance Program] reforms that shut down hundreds of wasteful Medicaid middlemen and saved over $2 billion for state and federal taxpayers in the past year alone,” a Hochul spokesperson said.
“Governor Hochul is laser focused on cutting out waste, fraud and abuse – and if Dr. Oz really cares so much about affordability, he should tell Washington Republicans to stop ripping healthcare away from everyday New Yorkers.”
