Medicaid Operation in New York: Federal Teams Raid Nursing Homes

ABD's federal and local law enforcement in New York City carried out operations at multiple locations on Tuesday, October 20 amid suspicions of fraud in the Medicaid program. The FBI confirmed that security forces were operating in Queens, Staten Island, and Brooklyn. According to information in the ABD press, the operations were said to target adult day-care centers.

Operation Focused on Money Laundering and Improper Billing Allegations

Within the investigation, officials are examining payments for services not provided through Medicaid, illegal commissions, and potential money‑laundering risks. It was reported that the operation involved teams from Homeland Security Investigations (HSI), the New York State Medicaid Office of the Inspector General, the Internal Revenue Service (IRS), and the New York Police Department (NYPD).

Computers and Documents Seized

At the Hanmaum Daycare center in the Flushing area of Queens, it was reported that around 13:30 on October 20, teams left the area with approximately six boxes of documents and supplies, two computers, and a large plastic container. Officials did not comment on the details of the investigation at the scene.

New York Leads in Medicaid Spending

In 2024, Medicaid paid $3.35 billion to adult day‑care providers nationwide. Seventeen percent of that amount was transferred to facilities in the state of New York. According to information shared by the FBI, Medicaid spending per capita in New York during 2019‑2024 exceeded the national average by 40 to 60 percent.

Governor Hochul: Investigation Has Been Running for Months

New York Governor Kathy Hochul said the investigation has been continuing for months in coordination with federal officials. Hochul said her administration has strengthened oversight of the Medicaid program since 2021 and has forwarded more than 100 files for investigation and prosecution to the U.S. Attorney’s Office as part of the fight against fraud. The governor also said that the measures taken have saved more than $15 billion in Medicaid spending.