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Saritha Komatireddy slams Letitia James over Medicaid fraud unit

Federal officials cited the state's Medicaid fraud enforcement failures in suspending funding for the unit.

  Saritha Komatireddy Saritha Komatireddy / Saritha Komatireddy via LinkedIn

Republican attorney general candidate Saritha Komatireddy criticized incumbent Attorney General Letitia James on July 2 after the federal government suspended funding for New York's Medicaid Fraud Control Unit.

"The Inspector General just cut off funding to Letitia James's Medicaid Fraud Unit and called it among the worst-performing in the country –based on her own numbers," Komatireddy, a former federal prosecutor, said in a campaign statement.

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The U.S. Department of Health and Human Services' Office of Inspector General denied the unit's annual recertification and suspended approximately $60 million in federal grant funding effective July 1 after concluding that New York's Medicaid Fraud Control Unit failed to meet federal performance standards. The suspension is expected to remain in effect through at least Sept. 30 unless the state takes corrective action.

In its review, the inspector general said the unit averaged about nine criminal indictments annually between 2021 and 2025–among the lowest totals for large-state Medicaid fraud units. While federal officials acknowledged improvements in 2026 and recognized the unit's civil recoveries, they concluded its criminal enforcement performance did not meet federal requirements for recertification.

Komatireddy said the office receives about $60 million annually and employs more than 270 people to protect approximately 7 million New Yorkers enrolled in Medicaid.

She alleged that in four of the past five years, the unit brought fewer than 10 criminal fraud cases and secured only one or two convictions annually despite receiving more than 2,000 patient abuse and neglect complaints each year.

"I encourage you to read the full letter. It is detailed and damning, and it makes the reasons for the Unit's failure clear –a 'deliberate leadership choice' to shift focus, open fewer investigations, and drag cases on for years, resulting in ballooning Medicaid costs for our state and less cash back for our taxpayers," she said.

Komatireddy argued that New York spends more per resident on Medicaid than any other state and blamed what she described as inadequate enforcement of Medicaid fraud.

"This is not a partisan issue. It's about doing the job. Letitia James just decided not to do this part of it, and the people who pay the price are taxpayers, Medicaid patients, and seniors who can't protect themselves," she said.

Pledging changes if elected, Komatireddy said she would rebuild the Medicaid Fraud Control Unit by adding 20 criminal prosecutors and prioritizing fraud investigations.

"I was a federal prosecutor for over a decade. I know how to do this work. On day one, I'll rebuild this unit, add 20 criminal prosecutors, and start holding accountable the people stealing from taxpayers and preying on vulnerable New Yorkers. That's the job. I'll do it," she said.

James rejected the federal findings, calling the funding suspension politically motivated. Her office said New York's Medicaid Fraud Control Unit has recovered more than $627.8 million through Medicaid fraud investigations since 2019 and has earned national recognition for its civil enforcement work. 

The attorney general's office also noted that the federal review acknowledged recent improvements in the unit's criminal enforcement efforts, while maintaining that its overall performance failed to satisfy federal certification standards.

Discover more at New India Abroad.

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