US Regulator Dr. Oz Alleges Fraud and Waste in NY's $124B Medicaid Program

Oz's office is investigating the massive public health insurance program that covers over 6.8 million New Yorkers.

Feb. 22, 2026 at 8:51pm

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Dr. Mehmet Oz, the head of the US Center for Medicare and Medicaid Services, claimed on Sunday that New York's $124 billion Medicaid program is riddled with fraud and waste. Oz said his office is probing aspects of the state's massive public health insurance program, which covers over 6.8 million New Yorkers, or 34% of the state's population. While Oz did not provide specifics, his comments come after recent reports of hundreds of millions in potential fraud and waste in Medicaid transportation and personal assistance programs in New York.

Why it matters

New York's Medicaid program is the largest in the country, costing taxpayers over $124 billion annually. Any widespread fraud or mismanagement in the program could have significant financial implications for the state and federal government, as well as impact the vulnerable populations who rely on Medicaid services. Oz's allegations raise concerns about the oversight and integrity of one of the most expensive public health insurance programs in the US.

The details

Oz, who heads the US Center for Medicare and Medicaid Services, said on a radio program that there are many people providing illegitimate services through New York's Medicaid program that are costing taxpayers a lot of money. He said the "dishonesty" around Medicaid programs is "stripping the guts out of the affordability of these systems." Recent reports have uncovered potential fraud in Medicaid transportation and personal assistance programs in New York, including up to $196 million lost through improper rides and $1.2 billion lost to scammers. These issues were part of Medicaid overhauls under former Governor Andrew Cuomo that have continued under Governor Kathy Hochul.

  • Oz made the allegations on Sunday, February 22, 2026 during an interview on the '77 WABC Cats Roundtable' program.

The players

Dr. Mehmet Oz

The head of the US Center for Medicare and Medicaid Services who is investigating fraud and waste in New York's Medicaid program.

Kathy Hochul

The current Governor of New York who has continued Medicaid reforms started under the previous administration.

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What they’re saying

“In the beautiful city of New York and surrounding New York state, we know that there are a lot of people who are providing services that we don't think are legitimate, that are costing the taxpayers a lot of money.”

— Dr. Mehmet Oz, Head of US Center for Medicare and Medicaid Services (77 WABC Cats Roundtable)

“The dishonesty around some of these programs, in Medicaid in particular, costs a lot of money that has stripped the guts out of the affordability of these systems.”

— Dr. Mehmet Oz, Head of US Center for Medicare and Medicaid Services (77 WABC Cats Roundtable)

“Before this federal administration even took office, Governor Hochul took action in 2024 with sweeping CDPAP [Consumer Directed Personal Assistance Program] reforms that shut down hundreds of wasteful Medicaid middlemen and saved over $2 billion for state and federal taxpayers in the past year alone.”

— Kathy Hochul (Hochul spokesperson)

“Governor Hochul is laser focused on cutting out waste, fraud and abuse – and if Dr. Oz really cares so much about affordability, he should tell Washington Republicans to stop ripping healthcare away from everyday New Yorkers.”

— Kathy Hochul (Hochul spokesperson)

What’s next

Oz's office is continuing its investigation into potential fraud and waste in New York's Medicaid program, with a focus on issues like the Medicaid transportation and personal assistance programs that have been flagged in recent audits and reports.

The takeaway

Oz's allegations of widespread fraud and waste in New York's massive $124 billion Medicaid program raise serious concerns about the integrity and oversight of one of the country's largest public health insurance programs. While the state has taken some steps to address issues, the scale of the potential problems highlighted by Oz suggest more work is needed to ensure Medicaid funds are being used effectively and responsibly to serve vulnerable New Yorkers.