Dr. Oz Accuses Dem Govs. Hochul and Newsom of Ignoring Medicaid Fraud

Medicaid chief claims billions in fraud were allowed to 'go down the drain' under their watch

Published on Mar. 8, 2026

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Dr. Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services, has launched probes into the Medicaid programs of New York and California, accusing Democratic Govs. Kathy Hochul and Gavin Newsom of turning a blind eye to billions in fraud. Oz claims there is a 'rot in the system' and alleges that the high spending on home care workers and hospice programs in the two states is indicative of mismanagement and fraud.

Why it matters

Medicaid is a crucial public health insurance program, and allegations of widespread fraud and mismanagement could undermine public trust and lead to calls for reform. The political implications are also significant, as Oz is directly criticizing Democratic governors over the issue.

The details

Oz announced that his office is conducting an extensive probe of the Hochul administration's management of New York's $124 billion Medicaid program. He claims the number of home care workers in New York is spiraling out of control compared to other states, suggesting 'political patronage' and a 'jobs program.' Oz also took aim at California's hospice program, saying the state has 2,000 hospices in Los Angeles alone, even though 'no one dies in these hospices' and people are being 'tricked' into signing up. Oz said Republican-led states like Florida also have Medicaid fraud issues, but he directed most of his criticism at Hochul and Newsom for 'looking the other way.'

  • Oz announced the probe into New York's Medicaid program last week.
  • The Justice Department is set to file a lawsuit against Hochul's administration over its allegedly rigged revamp of the state's Medicaid home care program.

The players

Dr. Mehmet Oz

The administrator of the Centers for Medicare and Medicaid Services, who is leading the probes into New York and California's Medicaid programs.

Gov. Kathy Hochul

The Democratic governor of New York, whose administration's management of the state's $124 billion Medicaid program is under investigation by Oz.

Gov. Gavin Newsom

The Democratic governor of California, whom Oz accused of ignoring continuous calls from state auditors to deal with Medicaid fraud problems.

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What they’re saying

“There's a rot in the system. The fraud you see in New York state isn't a flaw — it's a feature for some people.”

— Dr. Mehmet Oz, Administrator, Centers for Medicare and Medicaid Services (77 WABC)

“In California, the governor ignored continuous calls from his own auditors to deal with these problems. Whether it's the Russian mafia or other groups, they seem able to get him to look the other way.”

— Dr. Mehmet Oz, Administrator, Centers for Medicare and Medicaid Services (77 WABC)

What’s next

Oz's office is continuing its probes into the Medicaid programs in New York and California, and the Justice Department is set to file a lawsuit against the Hochul administration over the state's Medicaid home care program.

The takeaway

The allegations of widespread Medicaid fraud and mismanagement under Democratic governors Hochul and Newsom could have significant political implications and lead to calls for reform of the crucial public health insurance program.