The Trump administration told New York on Tuesday it will stop funding the
state’s Medicaid Fraud Control Unit, citing poor performance and a comparatively
low number of criminal referrals, the U.S. Department of Health and Human
Services said in a letter to Attorney General Letitia James. HHS warned the
funding cut could jeopardize New York’s eligibility for federal Medicaid dollars
for low‑income healthcare services. The Medicaid Fraud Control Unit, overseen by
the attorney general, investigates and prosecutes provider fraud.
