Full Breakdown
Dr. Mehmet Oz Critiques Hochul and Newsom Over Medicaid Fraud Allegations
3/9/2026, 2:46:22 AM
Allegations of Medicaid Mismanagement
Dr. Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services, has publicly criticized Democratic Governors Kathy Hochul of New York and Gavin Newsom of California for their handling of Medicaid fraud. During an appearance on 77 WABC’s “Cats Roundtable,” Oz claimed that these governors have failed to address significant fraud issues within their states' Medicaid programs, which are vital public health insurance systems for low-income individuals. He specifically mentioned that Hochul and Newsom, along with Minnesota Governor Tim Walz, have not taken the necessary steps to combat fraud effectively.
Oz announced that his office is launching an extensive investigation into Hochul's management of New York's $124 billion Medicaid program. He asserted that the fraud present in the system is not merely a flaw but a systemic issue, stating, “There’s a rot in the system.” He highlighted the disproportionate number of employees in New York's home care and personal care programs compared to other states, suggesting that these positions may be politically motivated rather than genuinely beneficial to the elderly population.
Specific Claims Against California and New York
In his critique, Oz pointed out that California's Medicaid spending on hospice programs is significantly higher than in other states, with around 2,000 hospices in Los Angeles alone. He alleged that many of these hospices are fraudulent, claiming, “no one dies in these hospices,” and accused operators of tricking individuals into signing up to exploit federal funding. Oz expressed frustration that both Hochul and Newsom have ignored warnings from state auditors regarding these issues, implying that their inaction is due to political and financial pressures.
Official Responses and Defense
In response to Oz's allegations, a spokesperson for Governor Hochul defended her administration's efforts, stating that she has been proactive in addressing waste and fraud in the Medicaid program. The spokesperson highlighted reforms that have reportedly saved over $2 billion for taxpayers while maintaining essential home care services. The statement also suggested that Oz's criticisms align with broader Republican efforts to undermine healthcare programs for vulnerable populations.
Governor Newsom did not provide an immediate comment regarding Oz's accusations. However, Oz's remarks reflect a growing concern among some officials about the integrity of Medicaid programs in states led by Democratic governors.
Criticism and Broader Implications
Oz's comments have sparked a debate about the effectiveness of Medicaid oversight in various states. While he acknowledged that Republican-led states, such as Florida under Governor Ron DeSantis, also face issues with Medicaid fraud, his primary focus remained on Hochul and Newsom. He argued that their failure to address these problems could have significant implications for the integrity of Medicaid services and the financial burden on taxpayers.
Verbatim Quotes
- “There’s a rot in the system. The fraud you see in New York state isn’t a flaw — it’s a feature for some people,” — Dr. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services
- “ A for Newsom, Oz said, “In California, the governor ignored continuous calls from his own auditors to deal with these problems.” — Dr. Mehmet Oz
- “Well before the Trump administration even took office, Governor Hochul was leading efforts to root out waste, fraud and abuse — including sweeping CDPAP [Consumer Directed Personal Assistance Program reforms that shut down hundreds of wasteful Medicaid middlemen and saved over $2 billion for state and federal taxpayers while protecting home care for those who need it,” — Hochul Spokesperson
This ongoing investigation and the public discourse surrounding it highlight the complexities of Medicaid management and the political ramifications of alleged fraud in state programs.
