Trump CMS Admits Major Error in New York Medicaid Fraud Claim
The Trump administration has acknowledged that CMS Administrator Mehmet Oz badly overstated alleged fraud in New York’s Medicaid personal care program, admitting to the Associated Press that a key figure used to justify a federal probe was wrong by a factor of about 11. Oz had publicly claimed in a social media video that roughly 5 million New Yorkers on Medicaid received personal care services like bathing and meal preparation last year, an "unheard of" level he cited in demanding the state "come clean," but CMS now concedes the actual number is about 450,000 out of 6.8 million enrollees. The mistake, rooted in a misreading of New York’s billing code structure, is one of several mischaracterizations the administration made about the state’s program and is fueling questions from health policy analysts about how carefully data is being vetted in Trump’s broader 'war on fraud' that explicitly targets Democratic-led states. New York Gov. Kathy Hochul’s office called the initial allegation "patently false" and welcomed CMS’s correction, while critics online are seizing on the episode as evidence that the administration is attacking first and checking the facts later in a politically charged crackdown on blue-state social spending.
📌 Key Facts
- CMS Administrator Mehmet Oz claimed New York’s Medicaid program provided personal care services to roughly 5 million people in a year, out of 6.8 million Medicaid enrollees.
- The Trump administration has now admitted to the Associated Press that the real figure is about 450,000, meaning Oz’s statement was off by roughly a factor of 11.
- The erroneous statistic was cited publicly as part of a federal fraud probe and a high-profile 'war on fraud' campaign focused 'primarily' on Democratic-led states such as New York.
📊 Relevant Data
In 2022, the top states by Medicaid fraud recovery dollars were Texas ($219.9 million, a Republican-led state), California ($108.5 million, a Democratic-led state), and Florida ($88.3 million, a Republican-led state), indicating that high fraud recoveries are not exclusive to Democratic-led states.
States ranked by Medicaid fraud dollars in 2022 — Becker's Hospital Review
The national Medicaid improper payment rate for 2025 is 6.12%, with 77.17% of improper payments due to insufficient documentation rather than fraud.
Fiscal Year 2025 Improper Payments Fact Sheet — Centers for Medicare & Medicaid Services
In New York, as of 2021, Medicaid enrollees by race/ethnicity are 27.9% White (population 55%), 18.7% Black (population 15%), 31.4% Hispanic (population 19%), and 15.7% Asian (population 9%), showing overrepresentation of Hispanic and Asian groups relative to their population shares.
New York's high Medicaid enrollment, reaching over 8 million in 2023, was partly due to federal pandemic-era legislation that prohibited states from disenrolling beneficiaries, leading to sustained high numbers even as poverty rates declined.
Report Finds Evidence of Growing Over-Enrollment in New York's Medicaid Program and Essential Plan — Empire Center for Public Policy
Minnesota, a Democratic-led state targeted in similar fraud probes, has a Medicaid fee-for-service improper payment rate of 1.3% in 2025, lower than the national average of 6.12%.
CMS Quietly Releases Medicaid State Improper Payment Rates for 2025: How Did Minnesota Do? — Center for Children and Families, Georgetown University
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