New York Medicaid Program Under Federal Fraud Investigation

Dr. Oz sends letter to Governor Hochul with 50 questions about waste and abuse in $124 billion program

Published on Mar. 4, 2026

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The massive $124 billion Medicaid program in New York, covering 6.8 million people, is now under a full federal fraud investigation led by Dr. Oz. The investigation comes after Dr. Oz sent a letter to Governor Kathy Hochul with 50 sharp questions about the rampant fraud, waste, and abuse in the program, including issues with home care costs, non-medical rides, adult day care kickbacks, and duplicate senior services that are costing taxpayers hundreds of millions per year.

Why it matters

New York's Medicaid program is the largest in the country, and allegations of widespread fraud, waste, and abuse have long plagued the system. This federal investigation could uncover significant misuse of taxpayer funds and lead to reforms to improve accountability and oversight of the massive healthcare program.

The details

In his letter, Dr. Oz highlighted several areas of concern, including home care costs that are significantly higher than the national average, a 121% jump in non-medical rides, a $68 million adult day care kickback scheme that was busted, and up to $400 million per year lost to duplicate senior services. The investigation will dig deep into these issues and other potential fraud within the $124 billion program.

  • On March 3, 2026, Dr. Oz sent a letter to Governor Kathy Hochul with 50 questions about fraud and abuse in the New York Medicaid program.

The players

Kathy Hochul

The Governor of New York, whose administration oversees the state's $124 billion Medicaid program that is now under federal investigation.

Dr. Oz

The celebrity doctor who is leading the federal fraud investigation into New York's Medicaid program after sending a letter to Governor Hochul with 50 sharp questions.

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What’s next

The federal investigation is just beginning, and it remains to be seen what specific findings or reforms may come from the probe into New York's Medicaid program.

The takeaway

This case highlights the ongoing challenges of rooting out fraud and abuse within large government healthcare programs like Medicaid. The results of this federal investigation could have major implications for how New York manages and oversees its massive $124 billion Medicaid system going forward.