Mehmet Oz, the administrator of the U.S. Centers for Medicare & Medicaid Services, has accused Chinese crime syndicates of defrauding New York's Medicaid program, which he described as bloated and rife with fraud. Oz stated on a radio program that these organizations are submitting millions of dollars in fraudulent medical bills.
Oz recently visited Flushing, Queens, an area with a concentration of social adult care centers primarily serving ethnic Chinese and Korean senior citizens. He claims these centers and associated pharmacies are generating a large volume of questionable bills to Medicaid, a public health insurance program for low-income individuals. The federal government covers over half of Medicaid's costs, with state and local governments responsible for the remainder.
"Social safety net programs are being defrauded. They’re being hurt oftentimes by foreign governments or foreign-run criminal syndicate organizations," Oz said on 77 WABC's “Cats Roundtable.” He further alleged that these groups are also involved in human trafficking along the East Coast.
According to Oz, the scheme involves bribing seniors to obtain their Medicaid or Medicare card information. This information is then allegedly used to submit fraudulent claims for services and products that were never rendered or received, such as expensive wheelchairs or medications, or for appointments and tests that never occurred.
Oz estimated that these fraudulent activities have generated $2.1 billion against New York's Medicaid program. He characterized certain programs, like social adult day care and personal care services, as features that encourage such overspending and fraud rather than flaws.
New York's Medicaid program, the most expensive per resident in the nation, has been under scrutiny by Oz's office. He also pointed to the state's personal care program, where relatives are paid to care for loved ones at home, as an area that has spiraled out of control. Oz suggested that the unionization of these attendants by SEIU Local 1199 has turned the program into a "jobs program" funded by federal dollars, with union dues allegedly supporting Democratic political campaigns.
New York's $40 billion portion of Medicaid spending now exceeds state aid to K-12 schools, according to a budget analysis. Oz stated, "Fraud is rising because government wants it to exist."
A spokesperson for New York Governor Kathy Hochul defended the state's management of the Medicaid program, citing reforms that have reportedly saved over $2 billion by shutting down wasteful middlemen while preserving home care services. The spokesperson accused Trump administration officials of aiming to eliminate programs that support vulnerable populations and healthcare access for New Yorkers. The state's Social Adult Day Care program was developed in partnership with the Centers for Medicare & Medicaid Services through a federal waiver, a model also used by other states.