Trump Administration Admits Error in Medicaid Fraud Probe Figures

Faulty data undermines federal campaign targeting waste in Democratic-led states

Apr. 11, 2026 at 7:55am

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A photorealistic painting of a lone Medicaid application form or medical document sitting on a desk, with warm sunlight streaming in through a window and deep shadows cast across the surface, conveying a sense of quiet contemplation and the bureaucratic nature of the issue.The Trump administration's flawed data and adversarial approach to Medicaid fraud investigations raises concerns about the accuracy and motivations behind these efforts.NYC Today

The Trump administration acknowledged a significant error in the figures it used to justify a fraud probe into New York's Medicaid program, a mistake that undercuts the federal government's sweeping anti-fraud efforts around the country. The administration claimed New York's Medicaid program provided personal care services to 5 million people, nearly three-fourths of the state's 6.8 million Medicaid enrollees, but the real number was about 450,000, or 6-7% of enrollees.

Why it matters

The error raises questions about the validity of the Trump administration's other anti-fraud initiatives targeting Medicaid programs in Democratic-led states. Health analysts say the administration's adversarial approach to fraud 'politicizes' an issue that should involve collaborative problem-solving among all stakeholders.

The details

The mistake appeared in comments made last month by Dr. Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services, who claimed New York's Medicaid program had an unusually high utilization of personal care services. However, CMS later admitted the agency misidentified New York's approach to applying billing codes and had since refined its methodology. CMS said the probe was ongoing as the administration still has concerns with New York's oversight of personal care services and the Medicaid program.

  • In March 2026, Dr. Oz made the erroneous claims in a social media video and letter to New York's governor.
  • This week, CMS acknowledged the error to the Associated Press.

The players

Dr. Mehmet Oz

The administrator of the Centers for Medicare & Medicaid Services who made the erroneous claims about New York's Medicaid program.

Kathy Hochul

The Democratic governor of New York.

Michael Kinnucan

A senior health policy adviser at the Fiscal Policy Institute who analyzed the Trump administration's claims and called attention to the error.

Cadence Acquaviva

The senior public information officer for the New York Department of Health who called Oz's initial mischaracterizations 'a targeted attempt to obscure the facts'.

Nicolette Simmonds

A spokesperson for Governor Hochul who said the initial claim by CMS was 'patently false' and that the state has 'zero tolerance for waste, fraud and abuse in Medicaid'.

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What they’re saying

“These numbers could have been cleared up in a phone call, so it's really slapdash.”

— Michael Kinnucan, Senior health policy adviser, Fiscal Policy Institute

“New York State remains committed to protecting and preserving vital Medicaid programs that deliver high-quality services to New Yorkers who depend on them.”

— Cadence Acquaviva, Senior public information officer, New York Department of Health

“The initial claim by CMS was patently false, and we are glad they now admit it.”

— Nicolette Simmonds, Spokesperson for Governor Kathy Hochul

What’s next

CMS said the probe into New York's Medicaid program is ongoing as the administration still has concerns about the state's oversight of personal care services.

The takeaway

This incident highlights the need for a collaborative, fact-based approach to addressing potential Medicaid fraud, rather than an adversarial, politically-charged campaign that relies on faulty data. It raises doubts about the validity of the Trump administration's broader anti-fraud efforts targeting Democratic-led states.