Trump administration admits error in New York Medicaid fraud claims

NEW YORK (AP) — President Donald Trump's administration this week acknowledged it made a significant error in figures it used to help justify a fraud probe into New York's Medicaid program. This glaring mistake undercuts a federal campaign to tackle waste, primarily in Democratic-led states. The administration admitted the error first to The Associated Press, prompting health analysts to question how many of its sweeping anti-fraud efforts around the country were based on faulty findings.

Dr. Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services (CMS), claimed in a social media video that New York's Medicaid program provided personal care services to approximately 5 million people last year. This would account for nearly three-fourths of the state's 6.8 million Medicaid enrollees. However, CMS spokesman Chris Krepich clarified that the actual number was about 450,000, or between 6% and 7% of total enrollees. Krepich stated, "CMS is committed to ensuring its analyses fully reflect state-specific billing practices and will continue to work closely with New York to validate data and strengthen program integrity oversight."

The probe into New York is part of a broader crackdown by the Trump administration, which has initiated similar investigations in at least four other states, including California and Florida. This effort aligns with the administration's strategy to address voter concerns about healthcare affordability ahead of the upcoming midterm elections. Trump recently signed an executive order to create an anti-fraud task force across federal benefit programs, led by Vice President JD Vance.

Cadence Acquaviva, senior public information officer for the New York Department of Health, criticized Oz's initial mischaracterizations as "a targeted attempt to obscure the facts." New York Governor Kathy Hochul's spokesperson stated, "The initial claim by CMS was patently false, and we are glad they now admit it."

Kinnucan, a health policy adviser, expressed concern that the Trump administration's adversarial approach politicizes the issue of Medicaid fraud, stating, "We want to think collaboratively among all the stakeholders in the program about how we can actually fix it."

What to watch: The ongoing investigation into New York's Medicaid program and its implications for federal-state relations as midterm elections approach.