While Kicking Millions Off Healthcare, GOP Holds 'Sham Hearing' on Medicaid Fraud

Congressional Democrats and healthcare justice advocates on Thursday accused Republicans of trying to divert attention away from their destructive cuts to Medicaid—and the resulting large-scale loss of insurance coverage—by convening a hearing on purportedly "rampant" fraud in the program that provides care to tens of millions of low-income Americans.

Rep. Frank Pallone Jr. (D-NJ), the top Democrat on the House Energy and Commerce Committee, noted in his scathing opening remarks at the hearing that Republicans have "repeatedly insisted" they are only interested in fighting fraud and abuse of taxpayer dollars, even as their unprecedented Medicaid cuts strip healthcare from millions of people across the US, including many children.

"You cannot cut healthcare by $1 trillion and not impact millions of people’s healthcare," said Pallone, pointing to a report published earlier this week estimating that more than 5 million Americans have lost health insurance since President Donald Trump signed the GOP's massive budget package into law last summer.

"If Republicans are really interested in looking into waste, fraud, and abuse, they should look no further than the actions of Trump and his administration," Pallone continued, pointing to the illegal and costly war of choice in Iran as just one example. "Playing politics with Americans’ healthcare is cruel and dangerous. Unfortunately, that is what we are repeatedly seeing from Republicans here in Washington."

The advocacy group Protect Our Care decried the GOP's "sham hearing" and said Republicans are "pointing fingers at everyone but themselves."

“Let’s be clear about who the real fraudsters are: not the senior rationing insulin, not the mom skipping the emergency room, and not the family choosing between groceries and seeing a doctor," said Brad Woodhouse, the group's president. "It’s Republicans ripping away healthcare from millions with one hand and signing tax breaks to billionaires and big corporations with the other.”

"They’ve decided that if they simply say they’re eliminating fraud in Medicaid, then they can get away with eliminating Medicaid. They are wrong."

Thursday's hearing featured testimony from the state Medicaid directors of California, Minnesota, New York, and Ohio, each of whom said they are committed to fighting fraud in their systems. Experts say most Medicaid fraud is committed by providers, not ordinary patients bilking the program.

In recent months, the Trump administration has launched investigations into the Medicaid programs of several states, including California, Minnesota, and New York—probes that officials in those Democratic-controlled states say are politically motivated and based on exaggerated claims of fraud.

In April, the Centers for Medicare & Medicaid Services—led by Mehmet Oz—admitted that it grossly overstated the number of New Yorkers who received personal care services under the state's Medicaid program last year.

"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," The Associated Press reported. "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."

Republicans have repeatedly cited "waste, fraud, and abuse" as reasons to target and slash federal Medicaid spending. But according to one analysis, just seven of the 24 Medicaid provisions in the 2025 Republican budget law specifically target waste, fraud, and abuse in the program. Overall, the GOP law will cut federal Medicaid spending by roughly $900 billion over the next decade.

In the coming months, Republicans are expected to pursue another budget reconciliation package that they say would crack down on "fraud" in Medicaid—a seeming admission that the 2025 budget law didn't accomplish the GOP's stated objective.

"As Republicans try to figure out a way to pay for President Trump’s reckless war of choice with Iran through another partisan reconciliation bill, they are reportedly considering even more cuts to Medicaid," Pallone said Thursday. "More than 70 million Americans who are disabled or chronically ill, elderly, or children rely on Medicaid for their healthcare."

"The Trump administration and Republicans in Congress continue to find ways to endanger or take away that care," Pallone added. "They’ve decided that if they simply say they’re eliminating fraud in Medicaid, then they can get away with eliminating Medicaid. They are wrong."