Trump moves to freeze funding to New York’s Medicaid fraud unit

The Trump administration said it is freezing millions of dollars in federal funding for New York’s Medicaid Fraud Control Unit (MFCU), the state division that investigates and prosecutes healthcare provider fraud and patient abuse or neglect in Medicaid-funded facilities. 

In a letter sent Tuesday to state officials, Department of Health and Human Services Inspector General March Bell said the state MFCU failed to secure enough indictments and was not doing enough to protect taxpayer funding.  

“Enough is enough,” Bell wrote.  “The New York MFCU has failed to comply with the terms and conditions of its MFCU grant award.” 

The New York MFCU was the poorest performing unit “by a wide margin” among similar-sized Units from 2023 to 2025, Bell wrote.   

New York’s fraud control unit only secured eight or nine criminal indictments in fiscal year (FY) 2025 and FY 2023, while other similar-sized units have secured hundreds, even though they oversee Medicaid programs that are half the size of New York’s, Bell........

© The Hill