Trump Administration Admits Error in Medicaid Fraud Claims Against New York

Sat Sep 05 2026 13:59:51 GMT+0000 (Coordinated Universal Time)

The Trump administration has acknowledged significant inaccuracies in its claims about New York's Medicaid program, raising questions about its broader anti-fraud initiatives.

In a recent public statement, the Trump administration admitted that it inflated the number of New Yorkers receiving personal care services under Medicaid, claiming the figure was around 5 million instead of the accurate count of about 450,000. This misrepresentation has led to scrutiny over the integrity of the federal government's ongoing Medicaid fraud investigations and raised concerns about the politicization of such efforts. Criticism has emerged from various stakeholders who argue that the administration's approach lacks collaboration and factual accuracy.

NEW YORK (AP) — The Trump administration has recently admitted to a major miscalculation regarding figures that supported a fraud investigation into New York’s Medicaid program, significantly undermining their anti-fraud campaign primarily targeted at states led by Democratic governors.

This clarification came in response to comments made by Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMS), where he originally claimed that around 5 million New Yorkers were receiving personal care services. The actual number, as clarified by CMS spokesperson Chris Krepich, is merely about 450,000, which accounts for approximately 6-7% of total Medicaid enrollees in New York.

The inflated figure prompted health analysts to scrutinize the validity of the current anti-fraud strategies implemented by the administration, suggesting a pattern of attacking issues without fully verifying the associated facts first. According to Fiscal Policy Institute's senior health policy advisor Michael Kinnucan, “These numbers could have been cleared up in a phone call, so it’s really slapdash.”

In an ongoing investigation, complications were noted not only in the inflated numbers but also in the quality and affordability of personal care services across the state, with New York reportedly having a high amount of spending per beneficiary compared to other states.

Analysts noted that the high spending aligns with New York's commitment to providing robust at-home care, leading to further debate over state and federal responsibilities in managing Medicaid resources. Spokespeople from the New York Department of Health expressed their concerns regarding the inaccuracies pointed out by the CMS, labeling Oz's statements as a targeted attempt to discredit the state's Medicaid integrity.

"Governor Hochul has been clear that New York has zero tolerance for waste, fraud, and abuse in Medicaid," stated a spokesperson, emphasizing the state's resolve to protect its vital programs.

The miscalculation by the Trump administration reflects a broader pattern as it pursues similar fraud investigations in states like California and Florida, raising concerns over whether fraud is being weaponized for political purposes as the country approaches upcoming elections.

Concerns about the politicization of Medicaid fraud investigations were echoed by Kinnucan, who highlighted the need for a cooperative approach among all stakeholders involved in reforming the program rather than using it as a political football.

Critics of Oz's assertions also pointed out that the program for personal care services in New York has grown more stringent, countering claims about relaxed eligibility criteria. Advocates argue that assumptions about family support in personal care needs are unrealistic and can perpetuate harmful stereotypes regarding disabilities and support systems.