Trump Admin Admits Majorly Inflated Medicaid Numbers Were Used to Justify Fraud Probe

(AP Photo/Alex Brandon, Pool)

According to a Friday exclusive from the Associated Press, President Donald Trump’s administration admitted to using significantly inflated New York Medicaid figures to justify a fraud probe — a mistake that is now raising broader questions about its nationwide crackdown on alleged abuse.

The error stems from claims last month by Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz on social media and in a letter to Gov. Kathy Hochul (D-NY) announcing the fraud probe.

Dr. Oz asserted that roughly 5 million New Yorkers were receiving personal care services through Medicaid — a figure that would represent nearly three-quarters of the state’s enrollees. In reality, the number is closer to 450,000 people, or about 6% to 7% of recipients.

A CMS spokesperson acknowledged the discrepancy, telling the AP’s Ali Swenson the agency had misinterpreted how New York applies its billing codes and has since updated its methodology.

“CMS is committed to ensuring its analyses fully reflect state-specific billing practices and will continue to work closely with New York to validate data and strengthen program integrity oversight,” read the emailed statement.

While the Trump administration is just now commenting, the miscalculation quickly drew criticism from health policy experts, including Fiscal Policy Institute senior adviser Michael Kinnucan, who called the situation “slapdash,” adding to the AP that “these numbers could have been cleared up in a phone call.”

New York officials also pushed back forcefully, with a spokesperson for Gov. Hochul telling the AP that the federal government’s original claim was “patently false,” while defending the state’s oversight of the program. Another state health official, Cadence Acquaviva, described the administration’s assertions as “a targeted attempt to obscure the facts.”

Despite the admission, the federal probe into New York’s Medicaid program remains ongoing. CMS has pointed to other concerns, including higher-than-average spending and the state’s extensive use of personal care aides.

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