Albany’s Failure to Fight Medicaid Fraud Costs Taxpayers Billions

Long Island officials are accusing Gov. Kathy Hochul and Albany’s Democratic leadership of failing to aggressively investigate Medicaid fraud because a full accounting could expose widespread abuse under their watch.

New York spends roughly $124 billion annually on Medicaid, according to state Sen. Dean Murray, who said the program’s size provides enormous opportunities for fraud while state enforcement remains inadequate.

“The bigger the program, the bigger the opportunity for fraud,” Murray said. “We are losing tens of billions of dollars through Medicaid fraud, and right now the state is not doing its job.”

Murray blamed Hochul’s policies and the Attorney General’s Office for creating what he called “the perfect storm for more fraud.”

“What’s not great is when we’re also providing the money to criminals and not going after them,” Murray said. “That’s the part where we’re dropping the ball.”

State Sen. Mario Mattera said the administration has resisted the forensic audits necessary to reveal the program’s true losses.

“Why aren’t they doing it?” Mattera asked. “Because they know it’s going to be exposed, and if it gets exposed, they’re going to look foolish because New Yorkers are getting ripped off.”

Mattera called for yearly forensic audits of Medicaid providers and nonprofit organizations, arguing that lawmakers have repeatedly raised concerns only to see reform bills blocked in committee.

“They’ve been in control so long,” Mattera said. “They allowed it, and they don’t want this exposed because they know the fraud is out of control.”

Suffolk County Executive Ed Romaine said stronger local participation could uncover fraud that state agencies have missed.

“Federal dollars were meant for specific purposes,” Romaine said. “These fraudsters are stealing from the poor they were meant to assist and enriching themselves. It’s disgraceful.”

Assemblyman Joseph DeStefano said every stolen dollar deprives legitimate patients of care.

“When criminals can steal tens of millions of dollars to buy luxury homes, Ferraris and other expensive vehicles, it raises serious questions about oversight,” DeStefano said.

He called on Hochul to address “systemic weaknesses” and demanded more aggressive enforcement by the Attorney General’s Office.