NEW YORK — A growing crisis in Medicaid spending and oversight demands urgent action. Today, Saritha Komatireddy, Republican candidate for New York Attorney General, is sounding the alarm on one of Letitia James’s many failures and announced a plan to stop the scamming of New York and take on Medicaid fraud.

New York currently spends more per resident on Medicaid than any other state, with total spending projected to reach $126 billion this year – that’s nearly twice as much compared to neighboring states. Despite a declining population, Medicaid costs have continued to rise.

Since 2019, we have witnessed a 57% increase in funding for the Medicaid Fraud Control Unit (MFCU) under New York Attorney General Letitia James. James’s office is responsible for prosecuting Medicaid fraud and yet, despite the increase in funding for the MFCU, enforcement outcomes have dropped significantly. Between 2019 and 2024, annual recoveries have fallen from $168 million to just $31 million, with a low of $19 million in 2022. 

At the same time, the number of investigations relative to Medicaid spending remains among the lowest in the nation. New York’s MFCU has had more staff than California, Texas, and Ohio, but performed far fewer investigations. In 2024 alone, New York ran half as many investigations as California and got one-tenth of the recoveries. 

Today, Saritha Komatireddy released the following statement in response to this alarming news: 

“New York’s Medicaid spending is at record highs but its Medicaid Fraud enforcement is record lows. That’s because New York Attorney General Letitia James has run the Medicaid Fraud Control Unit into the ground. She has cut staff, cut enforcement, and turned what was once the leading Medicaid Fraud unit in the country—obtaining hundreds of millions of dollars and more than 100 criminal convictions per year—into a place that does a fraction of that work. The numbers are shocking. Every year, the unit burns up more and more funding to do less. That’s due to a lack of leadership and accountability from Letitia James. Her failure to protect New Yorkers raises healthcare costs and taxes for everyone,” said Saritha Komatireddy.

She went on to say, “As a former federal prosecutor, I personally prosecuted more fraud, and recovered more money, in my career than this entire unit did in a year. As New York’s next Attorney General, I will take on Medicaid fraud. I’ll add 20 criminal fraud prosecutors to the Medicaid Fraud unit, ramp up civil fraud enforcement by using the False Claims Act, and aggressively investigate Medicaid fraud. New Yorkers deserve better.”

The Numbers:

“An analysis of nationwide MFCU records 2020 through 2024 shows that New York’s unit completed an average of eight investigations per billion dollars spent, which was the third-lowest rate among the 50 states and 63 percent below the U.S. average.” (The Empire Center)

For years, New York Attorney General Letitia James ran half as many investigations as California, even though she had more staff. (Data from the U.S. Department of Health and Human Services, Office of Inspector General)

Total Investigations

According to her own year-end reports, in the last reported year, New York Attorney General Letitia James’s Medicaid Fraud Control Unit recovered 18% of what it did when she first came into office.

Total Investigations

The unit went from securing 100+ criminal convictions per year to just a handful. (Data from the U.S. Department of Health and Human Services, Office of Inspector General)

Total Convictions

Every year in office, New York Attorney General Letitia James received more funding for her Medicaid Fraud Control Unit even while it did less.

Total Funding

WATCH Saritha Komatireddy’s full video here or below. 

To learn more about Saritha Komatireddy’s campaign for New York Attorney General, visit SarithaForNewYork.com.

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