Trump Administration Admits Error in New York Medicaid Fraud Claims

Fri Apr 10 2026 15:44:02 GMT+0000 (Coordinated Universal Time)

Significant inaccuracies regarding New York's Medicaid program by Dr. Mehmet Oz prompt response from state officials and health analysts.

The Trump administration has acknowledged a major error in its claims regarding New York's Medicaid program, admitting that only 450,000 residents used personal care services, contradicting earlier statements that suggested 5 million did. This misrepresentation reflects broader concerns about the administration's approach to fraud investigations in Democratic-led states and raises questions about the integrity of its data analysis methods.

NEW YORK - The Trump administration recently acknowledged a substantial error in the numbers used to support a fraud investigation into New York’s Medicaid program, undercutting allegations of widespread waste primarily aimed at Democratic-led states.

In remarks made by Dr. Mehmet Oz, head of the Centers for Medicare & Medicaid Services (CMS), it was claimed that 5 million individuals in New York were receiving personal care services through Medicaid, suggesting that nearly three-fourths of the state's 6.8 million Medicaid enrollees utilized these services. This claim has now been corrected, with the actual number being around 450,000, which is just about 6-7% of total enrollees.

Michael Kinnucan, a senior health policy adviser at the Fiscal Policy Institute, criticized the initial misrepresentation as 'slapdash,' noting that such discrepancies raise questions about the integrity of the administration's anti-fraud efforts nationwide. The CMS has since refined its methodology for analyzing Medicaid data, following the revelation of their oversight regarding billing codes and state-specific practices.

In response to the erroneous claims, Cadence Acquaviva, from New York's Department of Health, stated that the initial assertions were a calculated attempt to distort facts about the quality of care in New York's Medicaid program. The state's methodology prioritizes robust at-home care, leading to higher spending which some analysts argue is a reflection of both the high cost of services and policy priorities.

The correction of this data comes amid a broader crackdown on Medicaid fraud by the Trump administration, which is investigating several states, including California and Florida. As the midterm elections approach, the administration aims to reassure voters concerned about the economic implications of Medicaid spending. The move has drawn criticism for potentially politicizing a critical issue regarding healthcare access.

Healthcare advocates have also pointed out additional inaccuracies in Oz’s statements, including claims about changes to eligibility criteria that do not reflect the reality of New York’s Medicaid program. The ongoing debates highlight the complex dynamics in managing Medicaid, a vital resource for many families across the state.