NEW YORK, June 30 (Reuters) – \u2060The \u2060Trump administration said \u2060on Tuesday it would cut off funding to \u200bNew York’s Medicaid fraud unit, accusing it of underperforming in a \u200cmove that could jeopardize \u200cthe state’s eligibility to receive federal funding for low-income \u2060healthcare.<\/p>\n
New \u2060York has lagged behind other large states in the number \u200bof criminal cases brought in recent years, U.S. Department of Health and Human Services wrote in a letter to Attorney General \u200bLetitia James.\u00a0<\/p>\n
James oversees the Medicaid Fraud Control Unit, a body \u2060that investigates \u2060and prosecutes fraud \u2060by \u200bhealthcare providers.<\/p>\n
The unit has achieved results in civil cases and shown \u200bimprovement this year \u2060on criminal cases, HHS said, while concluding the improvement is not enough and denying it federal certification.\u00a0<\/p>\n
Vice President JD Vance is overseeing the interagency fraud crackdown that led to the \u2060move. The former Ohio senator is seen as a contender \u2060for the Republican presidential nomination in 2028.<\/p>\n
HHS pulled Hawaii’s Medicaid fraud unit funding earlier this month. The state has asked for reconsideration.<\/p>\n
Without federally certified Medicaid fraud units, states’ broader Medicaid funding could be in jeopardy.\u00a0<\/p>\n
Around 6.4 million people in New York are enrolled in Medicaid, the health program for low-income Americans.\u00a0<\/p>\n
James last week announced \u2060the arrest of a man accused of a $9 million Medicaid fraud scheme. The state recovered $627.8 million in its Medicaid fraud cases between 2019 through 2025, her office \u200bsaid at the time.<\/p>\n
(Reporting by Jody Godoy in \u200bNew YorkEditing by Nick Zieminski)<\/p>\n
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