Oz Probes New York's $124B Medicaid Program for Fraud

Federal officials say New York's Medicaid spending is 36% higher than the national average.

Published on Mar. 5, 2026

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The Centers for Medicare & Medicaid Services chief Dr. Mehmet Oz has launched a probe into New York's $124 billion Medicaid program, citing concerns over potential fraud and excessive spending. Oz has given the state 30 days to detail its anti-fraud efforts, noting that New York's Medicaid spending per beneficiary is 36% higher than the national average.

Why it matters

Medicaid fraud is a major issue that costs taxpayers billions each year. If the allegations against New York's Medicaid program are true, it could lead to a major federal crackdown and legal action, impacting the state's healthcare system and budget.

The details

According to the report, Oz is specifically looking at a deal between New York and a single firm, Public Partnerships LLC, to oversee the state's home care program under Medicaid. Critics allege this setup is enabling 'massive Medicaid fraud'. The forthcoming DOJ lawsuit is said to allege consumer protection, Medicaid fraud, and procurement fraud against Public Partnerships LLC.

  • In his State of the Union address last month, President Trump declared a 'war on fraud'.
  • Oz has given New York 30 days to detail its anti-fraud efforts.

The players

Dr. Mehmet Oz

Head of the Centers for Medicare & Medicaid Services, leading the probe into New York's Medicaid program.

Kathy Hochul

Governor of New York, whose administration made the deal with Public Partnerships LLC to oversee the state's home care Medicaid program.

Public Partnerships LLC

The firm that was awarded a contract by New York to oversee the state's home care Medicaid program, now facing allegations of fraud.

Julian Hagmann

Chief operating officer at Caring Professionals Inc., a home care provider critical of New York's deal with Public Partnerships LLC.

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What they’re saying

“It's massive Medicaid fraud.”

— Julian Hagmann, Chief Operating Officer, Caring Professionals Inc. (Seen, Heard & Whispered)

“The numbers coming out of New York's Medicaid program don't add up.”

— Dr. Mehmet Oz, Head, Centers for Medicare & Medicaid Services (Video Announcement)

What’s next

The judge overseeing the DOJ's forthcoming lawsuit against Public Partnerships LLC will determine if the firm engaged in consumer protection, Medicaid fraud, and procurement fraud.

The takeaway

This probe into New York's Medicaid program highlights the ongoing battle against fraud and waste in government healthcare programs. The outcome could have major implications for the state's healthcare system and budget if widespread fraud is uncovered.