Trump CMS Admits Major Error in New York Medicaid Fraud Accusation Used to Justify Probe
CMS acknowledged to the Associated Press that it made a "significant error" in the data used to justify a federal fraud probe of New York’s Medicaid program after Administrator Mehmet Oz incorrectly said the program delivered personal care services to roughly 5 million people last year — the true figure is about 450,000. The agency said the mistake stemmed from misidentifying New York’s use of a billing code, an error experts say could have been caught with a simple phone call, and Gov. Kathy Hochul’s office had called the initial claim "patently false."
📌 Key Facts
- CMS Administrator Mehmet Oz falsely claimed New York’s Medicaid program delivered personal care services to roughly 5 million people in the last year; the actual figure is about 450,000.
- The Trump administration acknowledged to the Associated Press that it made a "significant error" in the data it used to help justify a federal fraud probe into New York’s Medicaid program.
- The error stemmed from CMS misidentifying New York’s use of a billing code, which produced the large overcount.
- Outside health policy experts said the mistake could have been corrected with a simple phone call.
- New York Governor Kathy Hochul’s office called CMS’s initial claim "patently false" and welcomed the agency’s admission of error.
📊 Relevant Data
In 2023, the distribution of Medicaid enrollees in New York by race/ethnicity was approximately 27% White, 19% Black, 34% Hispanic, 12% Asian/Pacific Islander, and 8% other or unknown.
New York's Medicaid enrollment grew due to expansions under the Affordable Care Act, with childless adults between 100% and 138% of the federal poverty level becoming eligible, contributing to higher enrollment rates compared to states without such expansions.
New York Medicaid Enrollment by Eligibility Category — United Hospital Fund
The national Medicaid improper payment rate was estimated at 5.5% in fiscal year 2024, with variations by state but no systematic evidence of higher rates in Democratic-led states compared to Republican-led ones.
In New York, poverty rates contribute to high Medicaid enrollment, with 14.3% of the population below the poverty line in 2023, higher among Black (18.5%) and Hispanic (20.1%) residents compared to White (10.2%).
New York State Health Indicators by Race and Ethnicity, 2021-2023 — New York State Department of Health
New York's home care utilization in Medicaid grew at an average rate of 3.9% per year since 2018, with actual personal care service recipients around 450,000 in 2024, far below the erroneous 5 million claim.
How Fast is New York's Home Care Program Growing? — Fiscal Policy Institute
📊 Analysis & Commentary (1)
"A Wall Street Journal editorial defends Medicare Advantage and the Trump administration’s CMS plans (including possible auto‑enrollment), rebutting Democratic claims that the program wastes money and arguing private plans can curb fraud and protect Medicare finances."
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- CMS Administrator Mehmet Oz falsely claimed New York’s Medicaid program delivered personal care services to roughly 5 million people in the last year; the actual figure is about 450,000.
- The Trump administration has acknowledged to the Associated Press that it made a 'significant error' in the data it used to help justify a federal fraud probe into New York’s Medicaid program.
- The error stemmed from CMS misidentifying New York’s use of a billing code, and outside health policy experts say the mistake could have been corrected with a simple phone call.
- New York Gov. Kathy Hochul’s office publicly called CMS’s initial claim 'patently false' and welcomed the agency’s admission of error.