Comer Takes New Action in Investigation of Fraud in New York’s Medicaid Programs

WASHINGTON-House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.) today is seeking information from the Centers for Medicare and Medicaid Services (CMS) about reports that the State of New York has been failing to abide by current law and properly match federal Medicaid funds. In a letter to CMS Administrator Dr. Mehmet Oz, Chairman Comer seeks a staff briefing on allegations that State has been fraudulently withholding Medicaid funds from local, low-income hospitals in order to bolster its failing balance sheet, and requests that Dr. Oz issues a formal clarification regarding the proper sourcing of non-federal share funds for the Medicaid Disproportionate Share Hospital (DSH) payments program.

"The Committee is concerned that the State, and likely other states too, are failing to follow federal law by misrepresenting the source of the non-federal share that the State is responsible for providing to trigger federal dollars under the Medicaid DSH program. Whistleblowers report that the State has concocted a scheme by which it has forced a safety net hospital to reimburse the State's portionof the Medicaid match, despite telling the federal government the DSH funds had gone to the hospital. Reports on this scheme indicate that the State has engaged in this behavior for more than 20 years, costing taxpayers over $1 billion for one hospital alone, Nassau University Medical Center (NUMC)," wrote Chairman Comer.

The House Oversight Committee initiated its investigation on July 2, 2025, by sending a letter to Governor Hochul and the Executive Chamber. The Committee has received some requested documents and communications concerning New York State's Medicaid DSH program, but nowhere near all. The investigation into this program is part of the Committee's larger investigation of fraudulent state and federal programs. On January 7, 2026, the Committee held a hearing on the widespread fraud in Minnesota's social programs, where criminals stole an estimated $9 billion in taxpayer funds. In addition, the Subcommittee on Government Operations held a hearing on January 13, 2026, to examine innovative and cost-effective tools that can be made available to federal programs to detect and prevent improper and fraudulent payments nationwide.

"After Article 78 lawsuits were filed on behalf of NUMC to re-coup funds improperly sent to the State via DSH intergovernmental transfers (IGT), reports have shown that New York's legislature, at the direction of Governor Kathy Hochul, passed a budget with provisions allowing for a hostile takeover of the Nassau Healthcare Corporation (NHCC) Board, the parent entity of NUMC. This hostile takeover also removed control of the public benefit corporation hospital from Nassau County executive Bruce Blakeman and the firing of NUMC CEO Meg Ryan and other top NUMC executives," concluded Chairman Comer. "In February, four Members of Congress from New York wrote to U.S. Department of Health and Human Services Secretary Robert Kennedy, Jr. and the Acting Administrator for the Centers for Medicare & Medicaid Services Stephanie Carlton to bring attention to this issue. In their letter, the lawmakers requested clarification on the obligation of states, including New York, to ensure timely and complete DSH payments to NUMC and other eligible hospitals and whether CMS has initiated a review of the situation that occurred at Nassau University Medical Center to determine if the State's actions are in compliance with federal statutes and regulations."

Read the letter to CMS Administrator Oz here.