NEW YORK — Federal health officials are broadening their investigation into state Medicaid programs by targeting New York, initiating a fraud examination just days after freezing close to $260 million in Minnesota’s Medicaid payments over comparable concerns.
Dr. Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, revealed Tuesday that the Trump administration has detected troubling patterns within New York’s Medicaid system. He has given state leadership a 30-day deadline to furnish comprehensive information about their approach to combating fraud, waste, and abuse, or face potential payment delays.
“Heart surgeons are trained to look at the numbers,” said Oz, who previously worked as a celebrity cardiac surgeon, during a Tuesday video statement. “Right now, the numbers coming out of New York’s Medicaid program don’t add up.”
This latest inquiry represents part of a broader federal campaign to combat fraud nationwide, which administration officials argue is essential for controlling excessive spending and safeguarding taxpayer dollars. As midterm election voters express concerns about rising costs, Trump has intensified these anti-fraud measures, revealing that Vice President JD Vance will assist in balancing the federal budget by leading a nationwide “war on fraud.”
Democratic state leaders have criticized the Republican administration’s actions as having political motivations and potentially devastating consequences for millions of Americans who depend on the healthcare safety net designed for low-income individuals.
In correspondence addressed to Democratic New York Governor Kathy Hochul, Oz stated that the state’s expenditure amounts, coupled with “serious concerns” regarding oversight of specific Medicaid services, require “immediate investigation, corrective action and enhanced transparency.”
The correspondence highlighted particular areas of worry, including an unusually high percentage of New York’s Medicaid recipients obtaining personal care services for daily activities such as bathing, grooming, and meal preparation.
New York’s escalating Medicaid expenses have historically troubled the state’s governors and represented a key focus for former Governor Andrew Cuomo, a Democrat who struggled for years with the program’s increasing costs as the population ages and additional benefits are added. The state’s program, which required $115.6 billion during the 2025 fiscal year, serves healthcare needs for approximately one-third of New Yorkers and allocates more per individual than any other state’s Medicaid program.
Hochul has similarly attempted to control expenses by restructuring the administration of a home healthcare program.
When questioned by reporters Wednesday regarding Oz’s correspondence, Hochul stated that the Trump administration is singling out a Democratic-controlled state for political purposes but noted, “I will have to stand up and show them the truth and show them the facts, that they’re wrong. When there is fraud I will help them fight it.”
Hochul’s administration characterized the fraud investigation as the Trump administration’s effort to strip healthcare access from ordinary New Yorkers.
The New York probe follows by less than one week CMS’s suspension of Medicaid payments to Minnesota due to fraud concerns. Oz indicated the funds would only be released after Minnesota establishes “a comprehensive corrective action plan.”
The administration had previously referenced fraud allegations concerning daycare facilities operated by Minneapolis-area Somali residents as justification for a substantial federal enforcement operation in that region. Democratic Minnesota Governor Tim Walz described the new funding suspension as “targeted retribution.”
Minnesota filed a lawsuit against the Trump administration Monday regarding the delayed payments. The state is simultaneously appealing CMS’s decision to withhold $2 billion in yearly Medicaid funding announced in early January.
The Trump administration has attempted to withhold funding from Democratic-controlled states on at least two additional occasions recently, citing fraud concerns. This occurred with childcare subsidies and other social service programs in Minnesota, New York, and three additional states, as well as with the Supplemental Nutrition Assistance Program in 22 states that refused to provide data the federal government claims is necessary for fraud detection.
In both instances, judges have determined that funding must continue temporarily.
