Dr. Mehmet Oz, as Administrator of the Centers for Medicare & Medicaid Services (CMS), has sharply criticized New York State’s Medicaid program for being riddled with fraud and waste. In a February 2026 appearance on 77 WABC’s “Cats Roundtable,” Oz described the state’s $124 billion taxpayer-funded Medicaid system as a “monster” plagued by illegitimate services that drain resources.
He stated: “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.”
Oz emphasized that this dishonesty, particularly in Medicaid, “costs a lot of money that has stripped the guts out of the affordability of these systems.” He highlighted how fraud harms both taxpayers
and vulnerable beneficiaries who rely on the program for essential care.
Oz noted federal investigators are actively digging into these issues, part of the broader Trump administration “war on fraud” in healthcare programs.
In related remarks (e.g., alongside VP JD Vance), he pointed to rapid growth in areas like personal care services in New York as suspiciously prominent—outpacing typical retail jobs—and signaled upcoming audits or actions in high-risk states including New York.
Oz stressed proactive measures to protect funds, preserve program integrity, and ensure resources reach those truly in need, rather than scammers. He has framed such fraud as a nationwide threat (estimated in hundreds of billions annually across programs), but singled out New York’s scale and vulnerabilities for scrutiny.
Joseph Hernandez, Republican candidate for New York State Comptroller, said, “It should alarm every taxpayer that Washington is now investigating what Albany failed to control,” Hernandez said. “Governor Hochul has overseen explosive Medicaid spending, and Comptroller DiNapoli has failed to provide the aggressive oversight New Yorkers deserve.”
Recent audits and investigations have identified:
Up to $196 million in questionable Medicaid transportation payments
Approximately $1.2 billion in alleged losses through the Consumer Directed Personal Assistance Program (CDPAP)
Hundreds of millions spent annually on duplicative Social Adult Day Care services
“These are not minor accounting errors,” Hernandez said. “They represent billions of taxpayer dollars mismanaged under one-party rule.”
Medicaid is the public-health insurance program for low-income residents, with 6.8 million New Yorkers, more than one-third of our state’s population, enrolled.
