Dr. Oz Exposes $124 Billion Medicaid Fraud in New York: What You Need to Know (2026)

Dr. Oz's Scrutiny of New York's Medicaid Program: Uncovering Waste, Fraud, and Excessive Spending

New York's Medicaid program is under the microscope, and it's not just any doctor looking into its affairs. Dr. Mehmet Oz, the renowned physician and TV personality, has taken on the role of a Medicaid czar, scrutinizing the state's massive $124 billion Medicaid program. In a letter to Governor Kathy Hochul, Dr. Oz raised concerns about the program's integrity, highlighting potential waste, fraud, and abuse. With over 6.8 million New Yorkers relying on Medicaid, the stakes are high, and the need for transparency is paramount.

Dr. Oz's letter posed 50 questions to the governor's office, seeking detailed information on program integrity, provider screening, and enrollment oversight. He emphasized the need to protect beneficiaries and maintain public confidence in the program. The data reveals a stark reality: New York spends significantly more on Medicaid than other states, with an average spending of $12,528 per beneficiary, 36% higher than the national average. This excessive spending is attributed to various factors, including a higher number of Medicaid enrollees, potential fraud, expansive benefit structures, and excessive provider payment levels.

The investigation uncovered several instances of fraud, such as the Brooklyn scam where two individuals defrauded the state's Medicaid home care program to the tune of $68 million. Another case involved 10 defendants arrested for billing Medicaid for non-existent home health services. The Post also exposed how the state lost millions in taxpayer money through the Consumer Directed Personal Assistance Program, with scammers threatening seniors over a $120 million kickback scheme. Additionally, a 121% increase in spending on non-medical transportation services was identified, raising concerns about potential fraud through coordinated schemes.

Dr. Oz's concerns extend to mental health/psychotherapy services, which appear to be costing the program significantly. These findings are not isolated to New York; Dr. Oz has launched similar probes in California and Minnesota, uncovering billions in healthcare fraud and a massive welfare fraud scandal, respectively. Governor Hochul's administration, however, defended its efforts to curb waste, fraud, and abuse, citing CDPAP reforms that saved over $2 billion for taxpayers while protecting essential home care services.

The controversy lies in the potential impact of these findings on healthcare services funded by Medicaid. Critics argue that Republicans aim to cut these services, while Governor Hochul's statement emphasizes the need to protect vulnerable individuals and everyday New Yorkers' healthcare. As the investigation unfolds, the public awaits further revelations and the potential for structural program-integrity measures to address the identified vulnerabilities.

Dr. Oz Exposes $124 Billion Medicaid Fraud in New York: What You Need to Know (2026)
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