Trump Administration Admits Major Error in New York Medicaid Fraud Numbers
Key Takeaways
- The administration admitted NY Medicaid personal-care recipients were overcounted about tenfold to roughly 500,000.
- CMS told AP Oz's 5-million claim was an error undermining the fraud narrative.
- The correction fuels questions about the broader federal anti-fraud push, especially in Democratic-led states.
Trump Administration Admits Error
The Trump administration admitted it made a significant error in the numbers used to justify a Medicaid fraud investigation in New York.
“The Trump administration is acknowledging an error made in a recent social media video and letter to New York’s Democratic governor accusing the state of Medicaid fraud”
The actual number of people receiving personal care services was about 450,000, not the five million claimed by CMS Administrator Dr. Mehmet Oz.
CMS spokesman Chris Krepich told the Associated Press that the agency had misread the way New York applies certain Medicaid billing codes.
Fiscal Policy Institute senior health policy adviser Michael Kinnucan said the discrepancy could have been cleared up in a phone call.
New York's Medicaid program serves more than 6.7 million residents, meaning the actual utilization rate was about 6%, not 75% as Oz claimed.
How the Error Happened
The error appears to have stemmed from CMS adding up the number of total unique beneficiaries reported each month.
Michael Kinnucan explained the mistake with an analogy about counting toothbrush users.
Western New York Independent Living had a little over 1,000 total unique beneficiaries each month.
Adding them up over six months would look like 6,000 people, when many stayed with the same provider.
New York's Response and Context
New York officials pushed back against the Trump administration's claims.
“NEW YORK — President Donald Trump’s administration this week acknowledged it made a significant error in figures it used to help justifya fraud probeinto New York’s Medicaid program, a glaring mistake that undercuts a federal campaign to tackle waste, mostly in Democratic-led states”
A Hochul spokesperson said the initial claim by CMS was patently false.
New York's Medicaid program serves more than 6.7 million residents, and only about 6% received personal care services.
New York has made moves to reduce costs and utilization of home care.
Advocates argue that while previous guidelines allowed more people to access care, disabled people see that as a cost-saving measure.
Broader Implications
The Trump administration's admission has significantly undermined confidence in its broader crackdown on fraud.
The New York case is part of a wider crackdown in multiple states.
President Trump signed an executive order creating a federal anti-fraud task force.
Analysts note that New York's higher cost of living can explain its higher spending.
The administration's campaign is now facing questions about its claims.
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