Dr. Mehmet Oz, the Medicaid czar, accused Democratic Governors Kathy Hochul and Gavin Newsom of ignoring rampant Medicaid fraud, which has resulted in the loss of billions of dollars. He made these claims on Sunday.
During an appearance on 77 WABC’s “Cats Roundtable” program, Oz criticized certain governors for their inaction, specifically pointing out Governor Tim Walz of Minnesota, Governor Gavin Newsom of California, and Governor Kathy Hochul of New York.
Medicaid serves as a public health insurance program aimed at assisting those in need, with the financial burden shared between the federal, state, and local governments.
Last week, Oz revealed that his office is carrying out an in-depth investigation into how Governor Hochul’s administration is handling New York’s vast $124 billion Medicaid program.
Additionally, The Post disclosed that the Justice Department is preparing to sue Hochul’s administration, alleging manipulation in the restructuring of the state’s Medicaid home care program.
Oz remarked, “There’s a fundamental issue within the system. The fraud occurring in New York isn’t merely a glitch—it serves as a benefit to some people,” highlighting the depth of the problem.
Oz claimed that the number of employees serving elderly residents in New York’s home care and personal care programs has spiraled out of control in New York compared to other states.
These workers, paid by taxpayers, are providing care that historically has been provided by family members, he said.
“I think it is political patronage, and it’s a jobs program,” Oz said.
He discussed senior community care centers in the city where elderly residents can socialize during the day, particularly in Brooklyn and Queens.
About $1.2 billion is spent on community centers.
“What are you actually doing for them? These [bills] are manufactured,” Oz said.
He then turned to California’s Medicaid spending on the proliferation of hospice programs, which dwarfs other states.
“The number of hospices … just in Los Angeles is about 2,000. In the entire country, there were 6,000,” he said.
“And here’s the part that drives you batty: no one dies in these hospices. No one‘s dying because they are lying. They’re signing up people falsely. They trick people into signing up. They charge a lot of money to the federal government,” he said.
Republican states also have problems with Medicaid fraud, including Florida, led by Gov. Ron DeSantis.
Oz said there are twice as many medical equipment suppliers in Florida that bill Medicaid as there are McDonald’s franchises.
But he directed most of his wrath at Hochul and Newsom for “looking the other way.”
“In New York State, there’s a tremendous amount of pressure on Gov. Hochul to not in any way interfere with the many monied interests who profit when you’re spending a lot more money than any other state per beneficiary on Medicaid,” he said.
“They don’t mind the fraud or they would have dealt with it… When really smart people don’t fix the problem, it’s because they don’t want to fix the problem.”
A for Newsom, Oz said, “In California, the governor ignored continuous calls from his own auditors to deal with these problems. Whether it’s the Russian mafia or other groups, they seem able to get him to look the other way. “
A rep for Hochul defended the governor’s oversight of the Medicaid program.
“Well before the Trump administration even took office, Governor Hochul was leading efforts to root out waste, fraud and abuse — including 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 while protecting home care for those who need it,” a Hochul spokesperson said.
“New York will continue to work with the federal government to identify bad actors — but let’s be clear about the real goal for Donald Trump and Washington Republicans: eliminating programs that support our most vulnerable and ripping away healthcare from everyday New Yorkers.”
Newsom had no immediate comment.
