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Trump administration admits a glaring error in its New York health fraud accusations

President Trump’s administration this week acknowledged it made a significant error in figures it used to help justify a fraud probe into New York’s Medicaid program, a glaring mistake that undercuts a federal campaign to tackle waste, mostly in Democratic-led states.

The error, which the administration admitted first to the Associated Press, prompted health analysts to question how many of the Republican administration’s sweeping anti-fraud efforts around the country were based on faulty findings. One of a few mischaracterizations the administration made about New York’s Medicaid program, the error also reflected a common criticism that’s been made of Trump’s second administration — that it tends to attack first and confirm the facts later.

“These numbers could have been cleared up in a phone call, so it’s really slapdash,” said Fiscal Policy Institute senior health policy adviser Michael Kinnucan, whose recent analysis called attention to the Trump administration’s inaccurate claim.

The mistake appeared in comments made last month by Dr. Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services, or CMS, in a social media video and in a letter to New York’s Democratic governor announcing the fraud investigation.

Oz claimed that New York’s Medicaid program last year provided some 5 million people with personal care services, which assist people in need with basic activities like bathing, grooming and meal preparation. That would add up to nearly three-fourths of the state’s 6.8 million Medicaid enrollees.

“That level of utilization is unheard of,” Oz said in the video, adding in his post that New York needs to “come clean about its Medicaid program.”

But the real number of New Yorkers who used those services last year was about 450,000, or between 6% and 7% of total enrollees, CMS spokesman Chris Krepich told the AP this week. He said the agency misidentified New York’s approach to applying billing codes and had since refined its methodology.

“CMS is committed to ensuring its analyses fully reflect state-specific billing practices and will continue to work closely with New York to validate data and strengthen program integrity oversight,” he said in an emailed statement.

Krepich said the probe was ongoing as the administration still has concerns with New York’s oversight of personal care services and the Medicaid program and is reviewing the state’s response to last month’s letter. CMS had raised other flags about New York’s program, including that it spends more per beneficiary and per resident than the average state, has high personal care spending and employs so many personal care aides that the job category is now the largest in the state.

Health analysts said the state’s high spending reflected both high costs for services in New York and a policy choice to provide robust at-home care. Cadence Acquaviva, senior public information officer for the New York Department of Health, called Oz’s initial mischaracterizations “a targeted attempt to obscure the facts.”

“New York State remains committed to protecting and preserving vital Medicaid programs that deliver high-quality services to New Yorkers who depend on them,” she said.

In a statement, a spokesperson for Gov. Kathy Hochul said, “The initial claim by CMS was patently false, and we are glad they now admit it.”

“Governor Hochul has been clear that New York has zero tolerance for waste, fraud and abuse in Medicaid, or any other state programs, and will continue her efforts to root out bad actors, protect taxpayer dollars, and safeguard the critical programs that New Yorkers rely on,” spokesperson Nicolette Simmonds said.

New York probe is part of a larger crackdown

The Trump administration’s investigation into New York comes as it has similarly approached at least four other states, including California, Florida, Maine and Minnesota, with investigations into potential healthcare fraud. The anti-fraud effort appears to be expanding as voters in the upcoming midterm elections say they’re concerned about affordability.

Trump last month signed an executive order to create an anti-fraud task force across federal benefit programs led by Vice President JD Vance. As part of that project, Vance announced the administration would temporarily halt $243 million in Medicaid funding to Minnesota over fraud concerns, a move over which the state has since sued.

Kinnucan, the analyst with expertise in New York’s Medicaid program, said he’s concerned that the Trump administration’s adversarial approach to targeting fraud in some states “politicizes” a conversation that should be a team effort.

“We want to think collaboratively among all the stakeholders in the program about how we can actually fix it,” Kinnucan said. “We don’t want to have fraud be this political football.”

Oz made other claims New York advocates say are inaccurate

In his video, Oz made at least two other claims about New York that Medicaid advocates and beneficiaries say distorted the facts.

In one instance, he said the state recently made its screening for personal care eligibility “more lenient by allowing problems like being ‘easily distracted’ to qualify for a personal care assistant.”

Rebecca Antar, director of the health law unit at the Legal Aid Society, said the opposite was true — that the state in a rule change that went into effect last September instead made its program requirements more stringent. She said being “easily distracted” doesn’t appear anywhere among them.

Krepich said the administrator was referring to whether New York’s standard for personal care services was “sufficiently rigorous.”

“When standards are overly permissive, it risks diverting resources away from individuals with the highest levels of need and placing long-term pressure on the sustainability of the Medicaid program,” he said.

Oz in the video also referred to personal care services as “something that our families would normally do for us, like carrying groceries.”

Kathleen Downes, a 33-year-old who has quadriplegic cerebral palsy and uses personal care services in New York’s Nassau County, said she was offended by the notion that all Medicaid beneficiaries have family members who are willing and able to help.

Downes, who has been disabled since birth and needs personal care help for things like showering, using the toilet and eating, said she hires both her mother and outside assistants for personal care services, so her aging mother doesn’t have to take on those tasks full time. She said her mother did the labor unpaid for years, precluding her from pursuing other career opportunities.

“He’s assuming that everybody wants to and can just do it for free forever,” Downes said. “And that’s not feasible for a lot of people.”

Swenson writes for the Associated Press. AP writer Anthony Izaguirre contributed to this report.

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In his first 100 days, Mamdani brings a unique star power to New York City governance

In his first 100 days in office, New York City Mayor Zohran Mamdani has governed with a star power unusual in politics.

Crowds of supporters show up to his news conferences. Basic municipal services have been infused with newfound excitement. Celebrities help him promote his agenda.

In the process, he’s been able to notch a few notable early wins. And he’s reached a detente, at least for now, with President Trump, a mercurial leader with an affinity for celebrities.

But as Mamdani, a Democrat, marks an early milestone in his mayoralty, it remains to be seen whether he’ll be able to leverage his fame into achieving the progressive policy proposals that propelled him to office.

Though he still has staunch critics, many of whom still view his past criticisms of the police department and Israel as major problems, Mamdani has been able to ease concerns among at least some skeptics.

“It’s early but so far, so good,” said Jay Jacobs, chair of the state’s Democratic Party, who made waves for not endorsing Mamdani during the election. “We may not agree on everything philosophically, but he is getting the job done.”

‘The biggest needs and the smallest needs’

As the mayor approached his 100th day — long a benchmark for judging an administration’s opening vision — his team has moved to highlight the administration’s commitment to the everyday responsibilities of the job.

While much of those duties are typical for his local office — picking up trash, plowing snow and filling potholes — the 34-year-old mayor has leaned on his knack for viral content creation to drive interest and awareness of government programs.

To hype up his child-care program for 2-year-olds, Mamdani recruited Cardi B to help judge a jingle contest that will determine the initiative’s theme song. His slick social media videos helped recruit thousands of new snow shovelers as a storm bore down on the city. A public service announcement he made brought more than 50,000 new subscribers to the city’s emergency alert system in a single week.

A few weeks ago, alongside Natasha Cloud of the New York Liberty, Mamdani announced a bracket-style competition in which people could vote on small projects for him to come and personally fix on his 100th day.

On Friday, Mamdani selected a winner — a garbage-filled lot in the Bronx — and helped pick up some of the junk with a sanitation crew, following a celebratory event that featured an overflowing trash can mascot and a cheerleading squad.

“I think every single day it’s an opportunity to meet the needs of New Yorkers,” he said. “And what we’ve seen over the course of this 100 days is that New York City wants to see a city government that is able to meet the biggest needs and the smallest needs.”

The celebrity status, though, can also prompt backlash. During a bitter cold snap, his surprise appearance on “The Tonight Show Starring Jimmy Fallon” was seen by some as insensitive at a moment when the death toll of homeless New Yorkers was rapidly rising.

“Too much styling and profiling,” said Curtis Sliwa, a Republican who ran against Mamdani during last year’s election, noting longstanding problems with street homelessness, public housing and infrastructure.

Still, Sliwa, who hammered Mamdani during the campaign but recently appeared in a comedy skit with the mayor during the City Hall press corps’ annual roast, appeared to give Mamdani some credit, even if it came with a caveat.

“We just had Eric Adams, swagger man who’d party to the break of dawn, and now we have a guy who seems like he’s got a normal working schedule,” said Sliwa, referencing the city’s previous mayor. “So having Zohran as the alternative, I think for a lot of people even if they disagree with him, there’s some stability.”

Still a star among supporters

On the night of Mamdani’s election party, hundreds packed the streets, some spontaneously, waiting for a glimpse of the mayor-elect leaving the venue. Departing campaign aides were cheered, by name, well after midnight. One attendee likened the street party to Beatlemania.

“I feel like I’m at a presidential inauguration,” said Medhavie Agnihotri, a 25-year-old tech consultant. “This is the first time in a while I’ve felt this hope.”

His star power has not appeared to wane since then.

Outside City Hall, New Yorkers and tourists frequently stop for selfies, peering through the iron gates in search of the mayor.

This week, on the mayor’s 97th day in office, a crowd gathered in the lobby of the busy Bellevue Hospital in Manhattan to watch as Mamdani announced the city would start transferring Rikers Island jail detainees with serious medical illnesses to a specialized unit at the hospital.

He entered to woos and applause from the onlookers, as many held up cellphones to record videos of the mayor. Dozens more watched along from a set of elevated walkways.

One man, Ricardo Granados, a 67-year-old retiree, was on his way to take his son to a medical appointment but stopped to see what all the hubbub was about just before the news conference started. He appeared delighted to learn the mayor was going to show up, saying he met Mamdani previously when the mayor was campaigning in his neighborhood.

“I’m extremely fond of him. I think he’s going to make a real difference,” Granados said. “He wants to find out who needs what and he wants to help.”

Izaguirre writes for the Associated Press. AP writer Jake Offenhartz contributed to this report.

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New York Gov. Hochul moves to weaken aggressive state climate law

Citing concerns about affordability, New York Gov. Kathy Hochul is proposing revising the state’s 2019 climate law, asking to delay implementation by several years and to adopt a different greenhouse-gas accounting method.

The changes would effectively water down a law viewed as one of the most ambitious state climate policies in the U.S.

Hochul called the law’s current targets “costly and unattainable” in a statement released Friday. “This is solely out of necessity — to protect New Yorkers’ pocketbooks and economy,” she said.

The Climate Leadership and Community Protection Act targets a 40% reduction in greenhouse gas emissions from 1990 levels by 2030 and an 85% cut by 2050. As of 2023, the state had lowered its emissions by about 14%.

Meeting the 2030 deadline would drastically drive up energy bills for New Yorkers, Hochul, a Democrat, has said. Regulations to implement the law are already delayed; Hochul wants to push them back to 2030 and create a new emissions target for 2040.

Energy bills have surged around the U.S., partly as a result of AI-driven demand. As of November, the average residential electricity price in New York was 26.5 cents per kilowatt-hour, ranking eighth highest in the country, according to Empire Center, a nonprofit think tank in Albany. The Iran war has sent oil and gas prices surging.

The proposed weakening of the law comes amid the Trump administration’s dismantling of federal climate regulations and clean energy incentives, which environmentalists have looked to Democrat-led states and cities to counter.

“Lots of people around the country — really around the world — have been looking to see how New York does in implementing this strong climate law,” said Michael Gerrard, a Columbia University law professor who directs the Sabin Center for Climate Change Law.

“If a very blue state like New York moves backwards on climate change as well, that’s a negative sign for the country,” he said. “If you can’t do it here, can you do it anywhere?”

Hochul, who is running for reelection this year, is seeking to advance changes through the state’s budget, which is due April 1. The proposal is expected to meet resistance from some Democratic lawmakers.

“We will negotiate with the governor,” said State Sen. Pete Harckham, who chairs the body’s environmental conservation committee. “We’ll be able to get to, I think, a resolution of this.”

Policymakers including Harckham and State Sen. Liz Krueger, who chairs the finance committee, penned a letter to Hochul earlier this month urging her not to back a delay.

Given Washington’s war on climate policy, they wrote, “it is incumbent on states like New York to reject this new wave of climate denial and put forward bold policies that will save New Yorkers money, reduce pollution and protect a livable climate.”

Krueger said Friday the proposed changes would increase the likelihood that the climate law will never be fully enacted.

“This is a serious problem,” she said. “We need to be spending the money for the infrastructure to help meet the targets.”

Business groups and Republicans in Albany have argued that implementing the law as it stands would drive up costs and worsen the affordability crisis. State Sen. Tom O’Mara has urged changes. “It is time [to] amend the CLCPA to account for economic realities,” he said in a statement. The Business Council, representing New York companies, last month said the deadlines stipulated “are proving unachievable.”

Even some Democrats have advocated for amendments. State Assemblymembers Carrie Woerner and John T. McDonald said last week that “the reality is difficult to ignore: New York is not on track to meet the CLCPA’s targets on the timeline written into law.”

“The real question is whether New York can remain committed to deep decarbonization while adapting its strategy to today’s conditions,” they added. “The goal should not be abandoning ambition. It should be pursuing it intelligently.”

In 2025, environmental groups sued Hochul’s administration after the state failed to set up a regulatory program for the climate law.

“The main effect of these proposed changes is to allow the Hochul administration to do nothing for at least the next four years,” said Rachel Spector, deputy managing attorney at Earthjustice, an environmental law organization that represents the groups. “These proposals will do nothing to benefit New Yorkers. The only beneficiaries would be Hochul along with gas utilities and corporate polluters.”

Hochul also wants to align New York’s emissions-counting standards with other U.S. states and the international community. That might mean switching from a 20-year emissions-counting methodology to a 100-year one. The shorter timeframe highlights the pollution impact of methane, a short-lived but potent greenhouse gas and the main component of natural gas. The 100-year metric essentially balances out short- with longer-lived gases like carbon dioxide.

“It’s ultimately a way to cheat on a test,” said Liz Moran, New York policy advocate at Earthjustice.

In October, a judge ruled in favor of the environmental groups, putting pressure on Hochul to enact a so-called cap-and-invest program that would help generate revenue for the state to transition to renewable energy.

However, a memo released in February by the New York State Energy Research and Development Authority concluded that implementing the policy would result in rocketing energy bills for New Yorkers.

It modeled a scenario in which the law were “implemented with regulations to meet the 2030 targets” and found that upstate New York households relying on oil and natural gas “would see costs in excess of $4,000 a year.”

Many Democrats and environmental advocates have pushed back on the narrative that climate policy is spiking costs. Harckham said the solution to improving affordability and lowering emissions is clear: “It’s renewable energy.”

“We set a law for ourselves,” he added. “We should be held accountable to it.”

Raimonde writes for Bloomberg.

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