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6mo ago

CMS Admits Inflated Statistic in New York Medicaid Probe

The data error raises doubts about how the White House is building its fraud cases against states.

FILE - Administrator for the Centers for Medicare & Medicaid Services Dr. Mehmet Oz speaks during a news conference on efforts to combat fraud, in the Old Eisenhower Executive Office Building on the White House campus Feb. 25, 2026, in Washington. (AP Photo/Tom Brenner, File)
Mehmet Oz participates in a discussion during the Conservative Political Action Conference on March 26, 2026, in Grapevine, Texas.
Centers for Medicare and Medicaid Services Administrator Mehmet Oz speaks at a fireside chat in the National Press Building on February 02, 2026 in Washington, DC.
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Overview

  • CMS, which acknowledged Friday that it misread New York’s billing codes, now says about 450,000 residents used Medicaid personal care last year, not 5 million.
  • The agency says the fraud probe remains open as it reviews New York’s response and points to concerns over high spending and the size of the personal care workforce.
  • New York’s health department and the governor’s office called the original figures false, and Legal Aid attorneys said Oz also mischaracterized the state’s eligibility rules.
  • The correction comes during a broader anti‑fraud push led by Vice President J.D. Vance that has targeted several states, including a temporary pause of $243 million in Minnesota Medicaid payments that sparked a lawsuit.
  • Policy analysts labeled the handling “slapdash” and warned that flawed data can fuel actions that threaten access to home help with bathing, grooming, and meals for people who rely on personal care services.