Full Breakdown
Federal Crackdown on Medicaid Fraud Targets NYC Adult Daycare Centers
By Drooid · · How we work
The Enforcement Sweep in New York City
On October 20, 2026, federal agents from the FBI, HHS Office of Inspector General, NYPD and partners raided adult-day-care facilities in Queens, Brooklyn, Staten Island and the Bronx, delivering warning letters to more than 80 providers. CMS Administrator Dr. Mehmet Oz visited Kent Senior Care and Evergreen Adult Day Care in Flushing, questioning billing records, attendance logs and wheelchair-transport charges.
Background & Context
The raids are part of a White-House-led effort to curb Medicaid abuse. Vice President J.D. Vance heads the White House Task Force on Fraud, which has highlighted large schemes such as a $3.7 billion Medicare equipment fraud case in Florida and a 2022 “Feeding Our Future” scandal in Minnesota that allegedly diverted $250 million in home-health funds.
Data & Statistics
- More than 80 NYC providers received warning letters during the October sweep.
- CBS analysis found Medicaid paid $3.35 billion to adult-day-care providers nationwide in 2024; 17 % went to New York, the highest state share.
- FBI audit footage showed New York’s Medicaid spending per enrollee was 40 %–60 % higher than the national average between 2019 and 2024.
Official Statements & Responses
Dr. Oz argued that repeated discrepancies suggested intentional wrongdoing rather than isolated errors. Vice President Vance framed the crackdown as a step to protect taxpayer-funded programs from organized-crime exploitation.
On-the-Ground Reports
At Kent Senior Care, Oz noted the occupancy sign listed a maximum of 70 persons, yet billing records showed near-full capacity daily. He observed seniors entering without signing in and questioned charges for wheelchair-transport services that were not provided. At Evergreen Adult Day Care, staff claimed 200 seniors attended on certain days, but Oz counted roughly 25 individuals. The director suggested some attendance entries dated Oct. 22 and Oct. 23 might be advance scheduling, a claim reporters could not verify.
Conflicting Reports & Gaps
- Attendance figures: Oz’s low headcounts conflict with provider-reported totals.
- Future-dated sign-ins: Unclear whether records were pre-filled schedules or falsified logs.
- Organized-crime links: Oz alleged connections to “Russian organized crime” and a “Chinese mafia” without presenting concrete evidence.
Verbatim Quotes
- “We're targeting providers who we believe engaged in illegal activity, ranging from money laundering, to kickbacks, to improper billing,” — Gov. Kathy Hochul
- “It's usually an enterprise involving several individuals,” — David Shapiro, John Jay College of Criminal Justice
What’s Next
Federal investigators have opened a tip line for the public to report suspected Medicaid fraud. The DOJ’s Fraud Division, created on April 7, continues to pursue related schemes, while the White House Task Force plans additional audits of adult-day-care providers nationwide. Outcomes of the New York raids, including any prosecutions, remain pending.