House Expands Medicaid Fraud Probe to 10 States

Lawmakers demand records from NY, CA, and other states to 'combat rampant waste'

Published on Mar. 5, 2026

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A House committee has launched an investigation into alleged Medicaid fraud in 10 states, including New York and California, demanding records from the governors and state health agencies to 'ensure program integrity in states nationwide.' The committee cited recent reports and prosecutions of fraudsters in the respective states, with the goal of combating 'rampant waste, fraud, and abuse' in the Medicaid program.

Why it matters

Medicaid fraud has been a persistent issue, diverting critical resources away from vulnerable Americans who rely on the program. This probe aims to identify and address fraud schemes that have targeted services for children with autism, substance abuse treatment, and other high-risk areas of the Medicaid system.

The details

The House Energy and Commerce Committee sent letters on March 3 to the governors and state health agency leaders in New York, California, Colorado, Massachusetts, Maine, Nebraska, Oregon, Pennsylvania, Vermont, and Washington, requesting records and communications related to Medicaid fraud. The letters cited specific cases of fraud, such as a $68 million scheme involving adult day cares in Brooklyn and a $120 million fraud targeting Medicaid and Medicare funds in Queens.

  • The House Energy and Commerce Committee launched the Medicaid fraud investigation on March 3, 2026.
  • In January 2026, two individuals linked to adult day cares in Brooklyn and a home health care firm pleaded guilty to defrauding taxpayers out of $68 million in Medicaid funds.

The players

House Energy and Commerce Committee

A U.S. House of Representatives committee responsible for overseeing issues related to energy, commerce, and healthcare, including the Medicaid program.

Brett Guthrie

The Republican chairman of the House Energy and Commerce Committee, leading the investigation into Medicaid fraud.

Kathy Hochul

The governor of New York, where a $120 million Medicaid and Medicare fraud scheme was uncovered.

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What they’re saying

“Fraud shouldn't be a partisan issue. It's our most vulnerable Americans who are most at risk from fraudsters diverting precious resources intended for critical, needed care.”

— Brett Guthrie, Chairman, House Energy and Commerce Committee (New York Post)

“We owe it to our fellow Americans to preserve the Medicaid program for those that need it most, and states have an important role to play in ensuring that Medicaid programs operate with integrity.”

— Brett Guthrie, Chairman, House Energy and Commerce Committee (New York Post)

What’s next

The House Energy and Commerce Committee will continue its investigation, reviewing the records and communications provided by the 10 states to identify and address Medicaid fraud schemes across the country.

The takeaway

This probe underscores the ongoing challenge of Medicaid fraud, which diverts critical resources away from vulnerable Americans who rely on the program. By targeting high-risk areas like autism services and substance abuse treatment, the committee aims to strengthen program integrity and ensure Medicaid funds are used for their intended purpose.