HHS Cuts Funding to New York Medicaid Fraud Control Unit for Poor Performance

The Trump administration has suspended funding for New York’s Medicaid Fraud Control Unit due to its alleged failure to combat fraud, the Department of Health and Human Services (HHS) Office of Inspector General announced on June 30.
The administration denied recertification of the New York fraud unit, which makes it ineligible for federal funds after Sept. 30, the end of the 2026 fiscal year.
New York receives about $60 million per year in taxpayer dollars to root out fraud in its Medicaid program and has staffed more than 270 people to perform that function, according to a letter from HHS Inspector General T. March Bell to the New York State Attorney’s Office….