{"id":206375,"date":"2026-03-06T00:00:07","date_gmt":"2026-03-06T00:00:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/206375\/"},"modified":"2026-03-06T00:00:07","modified_gmt":"2026-03-06T00:00:07","slug":"house-expands-medicaid-fraud-probe-to-10-states-to-combat-rampant-waste-new-york-and-california-on-notice","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/206375\/","title":{"rendered":"House expands Medicaid fraud probe to 10 states to &#8216;combat rampant waste&#8217; &#8212; New York and California on notice"},"content":{"rendered":"<p>WASHINGTON \u2014 A House committee has launched an investigation into alleged Medicaid fraud in 10 states \u2014 including New York and California \u2014 demanding records \u201cto ensure program integrity in states nationwide,\u201d The Post can reveal.<\/p>\n<p>The letters, sent March 3 by GOP leaders on the House Energy and Commerce Committee, asked for records and communications from the governors and leaders of state health agencies of New York, California, Colorado, Massachusetts, Maine, Nebraska, Oregon, Pennsylvania, Vermont and Washington State.<\/p>\n<p>Each of the missives drew attention to recent reports or prosecutions of fraudsters in the respective states.<\/p>\n<p>\u201cFraud shouldn\u2019t be a partisan issue,\u201d Energy and Commerce Chairman Brett Guthrie (R-Ky.) said in a statement. Getty Images for Puck<\/p>\n<p>In New York, for example, two individuals linked to adult day cares in Brooklyn and a home health care firm <a href=\"https:\/\/www.justice.gov\/opa\/pr\/two-individuals-plead-guilty-68m-adult-day-care-fraud-scheme\" target=\"_blank\" rel=\"noopener nofollow\">pleaded guilty in January<\/a> to defrauding taxpayers out of $68 million in Medicaid funds.<\/p>\n<p>Another scheme cited $120 million allegedly stolen from Medicaid and Medicare funds to the owners of Queens-based adult daycare centers and a pharmacy who were taking kickbacks.<\/p>\n<p>The Empire State spent $115.6 billion on Medicaid for almost 7 million people in fiscal year 2025, but the program \u201chas continued to grow at unsustainable levels,\u201d according to Gov. Kathy Hochul\u2019s <a href=\"https:\/\/www.budget.ny.gov\/pubs\/archive\/fy26\/ex\/book\/healthcare.pdf\" target=\"_blank\" rel=\"noopener nofollow\">budget plan<\/a> for this fiscal year.<\/p>\n<p>Other letters to California, Colorado, Pennsylvania and Nebraska noted massive percentage increases in spending on Medicaid services in recent years.<\/p>\n<p>\u201cFraud shouldn\u2019t be a partisan issue,\u201d Energy and Commerce Chairman Brett Guthrie (R-Ky.) said in a statement. \u201cIt\u2019s our most vulnerable Americans who are most at risk from fraudsters diverting precious resources intended for critical, needed care.\u201d <\/p>\n<p>The Empire State spent $115.6 billion on Medicaid for almost 7 million in fiscal year 2025, but the program \u201chas continued to grow at unsustainable levels,\u201d according to Gov. Kathy Hochul\u2019s budget plan for this fiscal year. Matthew McDermott for NY Post<\/p>\n<p>\u201cWe owe it to our fellow Americans to preserve the Medicaid program for those that need it most, and states have an important role to play in ensuring that Medicaid programs operate with integrity,\u201d he added. \u201cThe Committee will continue to combat rampant waste, fraud, and abuse across the entire country.\u201d<\/p>\n<p>The letters all cited reports of fraudsters bilking taxpayer funds in Minnesota \u2014 as well as Trump administration probes that recently led to the <a href=\"https:\/\/nypost.com\/2026\/02\/25\/us-news\/jd-vance-makes-dramatic-move-withholding-minnesota-medicaid-funds-in-first-battle-of-his-war-on-fraud\/\" rel=\"nofollow noopener\" target=\"_blank\">withholding of more than $250 million in Medicaid funding<\/a>.<\/p>\n<p>That fraud was perpetrated through \u201coverbilling, falsifying records, identity theft, and phantom claims in Medicaid social service and health programs for the elderly and disabled, children with autism, people struggling with substance use disorders, and homelessness,\u201d wrote Guthrie and two other GOP subcommittee chairmen, Rep. John Joyce (R-Pa.) and Rep. Morgan Griffith (R-Va.).<\/p>\n<p>Minnesota Gov. Tim Walz was grilled about fraud in his state before the House Oversight Committee earlier this week. Lenin Nolly\/NurPhoto\/Shutterstock<\/p>\n<p>The House Energy and Commerce Committee\u2019s probe comes after a hearing early in February that heard testimony from experts about kinds of fraud schemes \u2014\u00a0including those with \u201chigh rates\u201d of abuse such as Applied Behavioral Analysis (ABA), services for children with Autism Spectrum Disorder (ASD), substance abuse treatment centers, home and community based services and more.<\/p>\n<p>Certified fraud examiner Jessica Gay told the House committee that the vulnerable programs \u201cshould be on every state\u2019s radar.\u201d<\/p>\n<p>\u201cIf a state isn\u2019t monitoring ABA services closely, they are likely missing a considerable area where FWA is committed,\u201d Gay said.<\/p>\n<p>\u201cMedicaid fraud robs both taxpayers and patients, and we will pursue it wherever it hides,\u201d\u00a0Joyce said in a statement.<\/p>\n<p>\u201cRepublicans in Congress will continue to do the necessary legwork to investigate allegations of waste, fraud and abuse within our Medicaid system,\u201d added Griffith.<\/p>\n<p>Reps for the governors\u2019 offices and state health agencies in the states did not immediately respond to a request for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON \u2014 A House committee has launched an investigation into alleged Medicaid fraud in 10 states \u2014 including&hellip;\n","protected":false},"author":2,"featured_media":206376,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7,9,8,657,3130,16709,4694,13,1748,10104,3586],"class_list":["post-206375","post","type-post","status-publish","format-standard","has-post-thumbnail","category-california","tag-california","tag-california-headlines","tag-california-news","tag-exclusive","tag-fraud","tag-medicaid","tag-new-york","tag-politics","tag-republicans","tag-us-house-of-representatives","tag-us-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/206375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=206375"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/206375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/206376"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=206375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=206375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=206375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}