ALBANY, NY — Joseph Hernandez, Republican candidate for New York State Comptroller, today applauds the announcement by Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz that the federal government has launched an investigation into New York State’s $124 billion Medicaid program.
In a detailed letter to Governor Kathy Hochul and state health officials, Dr. Oz demanded answers to more than 50 questions about New York’s efforts to control costs and prevent fraud. It included questions on how the state screens providers and oversees program integrity.
“For years, New York’s Medicaid program has operated without meaningful oversight. That changes starting now,” Hernandez said. “Dr. Oz’s probe is a critical step towards restoring oversight to a program that spends nearly 80% more per resident than the national average.”
Hernandez pointed to recent examples where Dr. Oz and his team have already applied similar scrutiny, including ongoing investigations in California and Minnesota aimed at tightening Medicaid payment integrity. “If CMS can flush out fraud issues in other states, there’s no reason New York shouldn’t lead the nation in accountability,” Hernandez said.
Governor Hochul’s office responded to the CMS letter this afternoon by touting her “sweeping CDPAP reforms that shut down hundreds of wasteful Medicaid middlemen and saved over $2 billion” while pledging continued cooperation with federal investigators.
However, Hernandez noted that the state’s own data and reporting suggest those reforms fall well short of the transparency and controls needed to prevent fraud. CDPAP has grown rapidly and remains structurally vulnerable to billing abuses because claims depend heavily on self-reported hours and decentralized payroll intermediaries.
“We need real oversight, a job current Comptroller Tom DiNapoli has failed to do,” Hernandez said. “If elected, I will answer Dr. Oz’s call and lead New York toward a Medicaid system that serves patients, protects vulnerable New Yorkers, and respects taxpayers.”
To learn more about Joseph Hernandez’s plan to strengthen Medicaid oversight and protect taxpayers, visit hernandezforny.com.