The $260 billion budget proposal introduced by Gov. Kathy Hochul (D-NY) in January included a significant increase to Medicaid spending. However, the governor’s election-year budget won’t quiet accountability calls regarding an alleged Medicaid abuse scheme by the state of New York and concerns over a possible cover-up by the Hochul administration. It appears to include shady financial dealings that have been under congressional investigation for a month — and could land the governor in some hot water.

On Jan. 16, House Committee on Oversight and Government Reform Chairman James Comer (R-KY) wrote a letter to Centers for Medicare and Medicaid Services Administrator Mehmet Oz over reports that, during Hochul’s time in Albany, along with previous Democratic administrations, the state of New York appears to have intentionally failed to “properly match Medicaid funds” as required by federal law, a misappropriation that, if true, disproportionately affects hospitals that handle low-income patients and billions in Medicaid funding. Comer wrote to Oz seeking a staff briefing, among other things, according to a release.

“According to recent reports, the State has been withholding or clawing back Medicaid funds from local, low-income hospitals in order to buoy its failing balance sheet,” read Comer’s letter. “As part of its investigation into these allegations of financial impropriety, the Committee requested documents and communications from the New York Executive Chamber regarding the State’s Medicaid program and use of federal funds for the Disproportionate Share Hospital (DSH) payments program.”

Comer provided some details of the alleged scheme involving New York’s Medicaid program, including the........

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