The federal government admitted an error in the characterization of New York’s Medicaid program, which overstated the number of New Yorkers who received personal care services by 1,100 percent.
Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, said in a March social media post that 5.1 million beneficiaries received personal care services, which include things like help with eating, bathing, and dressing. That would have been nearly 75 percent of the New York State Medicaid enrollees in 2025.
However, the actual number receiving services was about 450,000. That’s less than 7 percent of enrollees, agency spokesperson Chris Krepich told The Associated Press this week.
“[The Centers for Medicare and Medicaid Services] is committed to ensuring its analyses fully reflect state-specific billing practices and will continue to work closely with New York to validate data and strengthen program integrity oversight,” Krepich said.
A spokesperson for Gov. Kathy Hochul said in a statement: “The initial claim by [the Centers for Medicare & Medicaid Services] was patently false, and we are glad they now admit it.”
Meanwhile, concerns with New York’s oversight of personal care services and the Medicaid program remain. The administration is reviewing the state’s response to March’s letter.
The federal agency reported in March that the state’s Medicaid cost for personal care services was $45 billion from 2023 through mid-2025. This expenditure was not reflected in the government’s adjustment.
New York’s home care spending—which captures 90 percent of the state’s personal care Medicaid spending—has grown “substantially,” from $7.7 billion to $11.9 billion, between 2018 and 2023, according to the Fiscal Policy Institute. The institute also pointed out the federal government’s error claim on the beneficiaries on March 30.
New York’s Medicaid spending on personal care services was $18.5 billion in fiscal year 2024, nearly 70 percent more than other states’ combined spending on this item, according to The Epoch Times’ analysis of data from the Department of Health and Human Services made public in February.
Given the more than $10 billion spent for 450,000 beneficiaries, the average annual cost for each personal care services beneficiary would amount to more than $22,000.
In March, Oz launched a federal investigation into New York’s Medicaid program, citing the unusual spending trend in the state.
New York Medicaid spending reached nearly $96 billion in 2024, the second-highest total in the nation that year, according to health care analytics group KFF.
The state’s per-beneficiary spending and Medicaid enrollees both exceeded the national average, according to the federal data.
In addition to New York’s Medicaid enrollment size, Oz reported that 38 percent of job growth in New York between 2023 and 2024 was from the home health and personal care aide category.
Hochul spokesperson Nicolette Simmonds said, “Governor Hochul has been clear that New York has zero tolerance for waste, fraud, and abuse in Medicaid, or any other state programs, and will continue her efforts to root out bad actors, protect taxpayer dollars, and safeguard the critical programs that New Yorkers rely on.”
