NY AG Hopeful Criticizes Letitia James Amidst Declining Medicaid Fraud Recoveries

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SouthernWorldwide.com – Republican New York attorney general candidate Saritha Komatireddy is making Medicaid fraud a central theme of her campaign, alleging that prosecutions have significantly decreased under the current Attorney General Letitia James.

The crackdown on Medicaid fraud has become a prominent issue nationwide, particularly after billions of dollars in alleged fraud linked to public assistance programs were uncovered in Minnesota. This scandal prompted the Trump administration to prioritize combating fraud, with Vice President JD Vance leading federal efforts. Consequently, Republican candidates across the country, including those in New York’s attorney general race, are urging states to intensify their prosecution of Medicaid fraud and recover taxpayer funds.

“They are completely failing to prosecute Medicaid fraud, and this can be seen solely based on the record of Letitia James and her Democratic predecessors,” Komatireddy stated. “This is not a partisan issue.”

Komatireddy highlighted that Medicaid fraud recoveries have drastically declined under James’s tenure. Data from the New York Attorney General’s annual reports indicates a drop from $168 million in 2019, her first year in office, to just $31 million in 2024.

Prior to James assuming office, New York’s attorneys general consistently achieved some of the nation’s highest recoveries from Medicaid fraud. Under Eliot Spitzer, the Medicaid Fraud Control Unit recovered $243.6 million in 2006. Andrew Cuomo’s office then recovered $113.8 million in 2007, $263.5 million in 2008, and over $283 million in 2009, totaling more than $660 million during his initial three years as attorney general. His successor, Eric Schneiderman, recovered over $335 million in 2012, which was the second-highest annual total in the unit’s history and its highest recovery in seven years.

“Even her Democratic predecessors used to bring in $200 to $300 million per year in fraudulent proceeds,” Komatireddy remarked. “When Tish James took office, it dropped to $20 to $30 million per year. According to her own year-end reports, she has simply chosen not to do that part of the job.”

While New York recovers less money from Medicaid fraud each year under James, the state’s expenditure on the fraud recovery program has actually increased. Spending rose from approximately $45 million in fiscal year 2020 to $70 million in 2025.

“Previously, the New York Attorney General’s office would secure around 100 criminal convictions annually, holding accountable those who were stealing from Medicaid,” Komatireddy explained. “Under Tish James, that number is very low. There was one year where she secured only eight criminal convictions.”

New York’s approach to Medicaid fraud has also drawn federal scrutiny. Earlier this year, Dr. Mehmet Oz, Administrator for the Centers for Medicare & Medicaid Services, sent a letter to Governor Kathy Hochul requesting further details on the state’s provider screening processes and its strategies for combating fraud. Oz indicated that this review aims to protect Medicaid beneficiaries and maintain public trust in the program. New York was among only three states, alongside California and Minnesota, to receive such a letter.

Komatireddy argued that reduced enforcement ultimately impacts New Yorkers through increased healthcare spending and diminished funds available for other state priorities.

“It is New Yorkers who bear the cost, because when individuals defraud Medicaid, it drives up our healthcare expenses,” she stated. “When we allow a billion dollars to essentially slip away over the course of her term, that is money we could be recouping as taxpayers.”

Instead, Komatireddy suggested that lawmakers are compelled to seek additional revenue from taxpayers.

“The officials in Albany constantly devise new methods to extract more money from taxpayers,” she said. “If you had an attorney general who genuinely prosecuted fraud effectively, there would be no need to worry about a tax hike.”

Komatireddy has pledged to bolster the Medicaid Fraud Control Unit by appointing an additional 20 criminal prosecutors.

Komatireddy, a former federal prosecutor with over a decade of experience in the U.S. Attorney’s Office for the Eastern District of New York and subsequently as chief of staff at the Drug Enforcement Administration, has characterized the election as a choice between a career law enforcement prosecutor and an ineffective incumbent.

“As I mentioned, we must actually perform the duties of the attorney general,” Komatireddy asserted. “That role includes prosecuting crime and fraud.”

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