NEW YORK (VINnews) — The head of the federal agency overseeing Medicaid said Sunday that New York’s $124 billion program is burdened by fraud and waste, with investigators reviewing parts of the system.

Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, said in a radio interview that questionable providers are costing taxpayers significant sums and undermining care for vulnerable residents.

He said fraudulent activity “strips resources” from the system and ultimately harms those who depend on it.

New York’s Medicaid program covers more than 6.8 million residents and funds services including hospital care, nursing homes and home-based assistance.

Past federal reviews have identified concerns in specific programs, including transportation services and consumer-directed home care, where auditors cited substantial improper payments.

Programs expanded during the administration of former Gov. Andrew Cuomo have continued under Gov. Kathy Hochul.

A spokesperson for Hochul said the state has enacted reforms aimed at eliminating waste and improving oversight, adding that officials remain focused on safeguarding healthcare access while addressing fraud and abuse.

No formal enforcement actions were announced in connection with the latest comments.