Trump Administration Walks Back Key Claims in New York Health Fraud Case: Report

The Donald Trump administration conceded it used the wrong numbers to help launch a Medicaid fraud investigation in New York, an admission that raised fresh questions about how federal anti-waste drives are being built and sold to the public. The reversal lands as the same administration is also pushing major payment shifts elsewhere in healthcare, including a net average 2.48% boost for Medicare Advantage plans in 2027— more than $13 billion in added payments —outlined in Medicare Advantage payments. According to a report by the Associated Press, the error centered on personal care services in New York's Medicaid program, after officials had cited figures suggesting usage on a scale that would have been extraordinary. The administration's correction arrived after analysts flagged the claim as implausible based on how the state reports and bills for those services. Truth Behind Inflated Medicaid Figures Revealed The disputed statistic was tied to statements from CMS Administrator Mehmet Oz, who had pointed to roughly 5 million people receiving personal care help in a state with about 6.8 million Medicaid enrollees. Federal officials later said the actual count was about 450,000 people, or around 6% to 7% of enrollees. CMS spokesperson Chris Krepich told the outlet the agency had mixed up how New York applies billing codes and said the methodology was adjusted. Krepich also said the investigation is still underway and that CMS is reviewing New York's response to the letter that announced the probe. New York officials framed the initial claims as politically aimed, with the state's health department calling the early descriptions a "a targeted attempt to obscure the facts." A spokesperson for Gov. Kathy Hochul (D) told AP that the original CMS assertion was "patently false" and argued the state can ...Full story available on Benzinga.com