FBI raids NYC adult care centers in $2.4B Medicaid fraud probe: What we know
FBI raids dozens of NYC adult care centers in Medicaid fraud probe
Federal agents raided more than 100 adult care centers across New York City in a major crackdown on suspected Medicaid fraud and illegal activity. FOX 5 NY's Jessica Formoso reports on everything we know about the ongoing federal investigation.
NEW YORK - The FBI and New York state authorities raided dozens of adult care centers across New York City in a major investigation into Medicaid fraud.
Gov. Kathy Hochul called it a coordinated operation as part of a months-long probe into alleged illicit activity involving more than 100 social adult care centers and providers.
NY Medicaid fraud investigation
What we know:
On Tuesday, federal agents were seen carrying boxes and computer equipment out of adult care centers across New York City, including in Brooklyn, Queens, Staten Island and Manhattan.
Dr. Oz confronts NYC adult daycare owners in $2.4B Medicaid fraud investigation
The FBI and New York state authorities executed surprise raids across Queens, Brooklyn, and Staten Island targeting over 100 social adult daycare centers suspected of widespread Medicaid fraud, kickbacks, and money laundering. FOX 5 NY's Jessica Formoso breaks down the case on Newsroom Live with Dan Bowens.
According to Hochul, the centers and their providers are suspected of involvement in potential fraud or other illegal acts, "ranging from money laundering to kickbacks to improper billing and other fraudulent activities."
The governor said the joint operation was aimed at protecting taxpayer dollars that fund Medicaid programs for seniors, and that she went to Washington, D.C. prior to the raids to meet with Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services.
FBI statement
What they're saying:
The FBI said in a statement posted on X that an audit of New York's Medicaid program found approximately $2.4 billion went to Social Adult Day Care (SADC) services from January 2019—October 2024.
"Medicaid, funded through federal, state, local, and provider tax sharing, consistently spends more per enrollee in New York than the national average, with costs estimated at 40 to 60 percent higher. In response to significant indicators of waste, abuse, and fraud within the SADC sector, the FBI has joined an interagency working group dedicated to immediately disrupting and dismantling billion-dollar health care fraud schemes and the money laundering networks that enable them," the statement said in part.
There's been no indication that any seniors receiving services at these centers knew of any fraudulent practices.
What we don't know:
Authorities have not released the list of every location targeted in the raids.
The Source: This story was written with information and statements from the FBI and New York Gov. Kathy Hochul.