Federal and state agencies launch coordinated Medicaid fraud crackdown across NYC

Key points

• Federal agents, including the FBI and HSI, conducted operations in Queens, Staten Island, and Brooklyn on October 20, 2026.
• CMS Administrator Dr. Mehmet Oz visited Kent Senior Care and Evergreen Adult Day Care in Flushing, Queens, to deliver warning letters regarding suspicious billing practices.
• Oz questioned staff about discrepancies, including billing for full occupancy when facilities appeared empty, charges for wheelchair transportation without visible wheelchairs, and attendance records that did not match sign-in sheets.
• New York Governor Kathy Hochul stated the operation targeted providers engaged in money laundering, kickbacks, and improper billing within the Medicaid program.
• The FBI confirmed the actions were court-authorized and part of ongoing criminal investigations but declined to provide further details or identify specific targets.
• No arrests or charges were announced by authorities at the time of reporting.

Background

This operation follows a broader federal push against healthcare fraud, including the 'Operation Save Skid Row' drug crackdown in Los Angeles in early October 2026. The current NYC action specifically targets the Medicaid program and adult day care providers, aligning with recent federal efforts to combat abuse in healthcare reimbursement systems.

How outlets are covering it

CBS News and News12 reported the operations as a broad federal and state law enforcement effort, with the FBI emphasizing that the actions were tied to ongoing investigations without revealing specific targets. Fox News focused on the direct involvement of CMS Administrator Dr. Mehmet Oz, highlighting his confrontational interactions with facility staff and his public questioning of billing practices, such as charges for services not visibly provided. While CBS and News12 noted the multi-agency nature of the operation, Fox News emphasized the personal role of federal leadership in the crackdown. All sources agreed that the operations were ongoing and that no arrests had been announced at the time of reporting.

Why it matters

The operation signals a significant federal and state effort to combat Medicaid fraud, particularly in adult day care facilities, which are critical for senior care. The involvement of high-profile officials like Dr. Oz and Governor Hochul underscores the political and financial stakes, as fraud in these programs directly impacts taxpayer funds and the availability of care for New Yorkers. The coordinated nature of the operation suggests a sustained effort to hold providers accountable for improper billing and abuse of the system.

What to watch

Authorities are expected to continue the investigation, with potential arrests and charges to follow. The FBI and other agencies may release more details as the investigation progresses. Facilities targeted in the operation may face further scrutiny, and the outcome could influence future Medicaid oversight and enforcement in New York City.