Trump Administration Admits Error in NY Medicaid Fraud Claims

Fri Apr 10 2026 15:48:31 GMT+0000 (Coordinated Universal Time)

Amidst allegations of Medicaid fraud, the Trump administration acknowledges a significant error in their data, misrepresenting New York’s Medicaid service utilization and raising concerns regarding the integrity of their anti-fraud efforts.

In a stunning revelation, the Trump administration has recognized a major miscalculation in its investigation into New York's Medicaid program, where claims suggested nearly 5 million beneficiaries received personal care services last year, when the actual figure is around 450,000. The mistake has led to doubts about other states under scrutiny for Medicaid fraud and highlights a persistent pattern in the administration's approach to tackling waste and fraud in the system.

NEW YORK (OnPointInfo) — This week, the Trump administration admitted to a significant miscalculation regarding New York's Medicaid program, undermining its fraud investigation claims. The error comes at a time when the federal government is ramping up efforts to combat perceived waste and fraud primarily in Democratic-led states.

The miscalculation, attributed to the administration’s Centers for Medicare & Medicaid Services (CMS), indicated that approximately 5 million individuals received personal care services last year, accounting for nearly three-fourths of New York’s total Medicaid enrollees. However, the actual number is closer to 450,000, or roughly 6-7% of beneficiaries. This disclosure has raised eyebrows regarding the overall validity of the administration's anti-fraud undertakings across the country.

Michael Kinnucan, a health policy adviser for the Fiscal Policy Institute, pointed out that the errors could have been clarified easily and criticized the approach of the administration for its haste in making allegations without confirming facts first.

The discrepancies were highlighted in comments from Dr. Mehmet Oz, CMS administrator, during a promotional video and a letter directed at New York's Governor. A CMS spokesperson acknowledged the error, adding that they were adjusting their methodology to better reflect state billing practices.

Krepich also noted that the probe into New York is ongoing, emphasizing concerns about high spending on personal care services and a model that employs a significant number of personal care aides. Critics argue that these issues stem from a mix of rising service costs and a commitment to providing at-home care.

Amidst the controversy, New York Governor Kathy Hochul expressed relief that the administration recognized their mistake, arguing for the protection of taxpayer dollars whilst maintaining high-quality Medicaid services. The state remains vigilant against waste, fraud, and abuse.

The investigation is part of a broader federal crackdown, with similar inquiries launched into several other states, including California, Florida, Maine, and Minnesota. While the Trump administration emphasizes taxpayer protection, analysts warn that such an adversarial approach can politicize a crucial issue that should involve collaborative efforts across the board.

Oz has faced backlash for making additional inaccurate claims regarding New York’s Medicaid eligibility criteria, prompting advocates to defend the integrity and necessity of the services provided. As the narrative unfolds, many are left questioning the motivations and methodologies behind the administration's actions in the healthcare system.