Albany, N.Y., February 10—State Senator Tom O'Mara (R,C-Big Flats), Ranking Member on the Senate Finance Committee, is again joining legislative colleagues in Albany this week to continue a monthlong series of joint Senate-Assembly hearings on Governor Kathy Hochul’s proposed 2026-2027 New York State budget. 

On Tuesday, the hearing examined the governor’s specific proposals for Health/Medicaid.

One of today’s panelists, Bill Hammond, Senior Fellow at the Albany-based Empire Center for Public Policy and a highly regarded expert on New York State’s Medicaid system, stated in written testimony (see attached copy of the written testimony above), “For the fourth year in a row, the governor has used the word ‘unsustainable’ to describe the growth rate of her own Medicaid budget. It's hard to dispute that assessment. Since 2022, the state share of Medicaid has soared by 60 percent, or roughly five times the inflation rate. That increase amounts to an additional $16 billion per year on top of what was already the highest per capita Medicaid spending in the U.S. With federal aid included, total Medicaid spending is up by $28 billion annually. The executive proposal would continue the unsustainable upward trend, increasing the state share by another $4.3 billion or 10 percent, almost four times the rate of inflation. This raises the question of what those additional tens of billions are buying for the people of New York.”

Hammond continued, “Instead of simply pouring more tax dollars into an already well-funded health care industry, the state's leaders should be looking for ways to constrain Medicaid costs and achieve better value for consumers.”

In his questioning, O’Mara asked Hammond what more New York State can and should be doing to root out abuse, fraud, and waste in the system. Earlier this year, the Senate Republican Conference called on Governor Hochul to undertake a comprehensive, independent audit of the state’s spending programs, especially Medicaid, following alarming reports of rampant fraud in government programs in the state of Minnesota and other places across the nation. Senate Republicans have introduced legislation to require an investigation pointing to longstanding and ongoing reports of widespread fraud, waste, and abuse in New York’s costly Medicaid program. 

A report authored by Hammond in late 2024 showed that while an estimated 5.5 million New Yorkers meet eligibility requirements for Medicaid, state enrollment is approximately 8.5 million – indicating the potential of 3 million ineligible enrollees. There have continued to be news reports of rampant fraud and abuse within the state’s Medicaid system, including an audit from the State Comptroller last year that found the Department of Health may have improperly paid over $2.6 billion in Medicaid payments to people not living in New York.

“What more should (New York State) be doing to root out the fraud and the waste in the system,” O’Mara asked, pointing to Hammond's testimony earlier in the hearing that New York State ranks third-lowest in the nation in the number of Medicaid investigations it conducts per every billion dollars spent on Medicaid.

[Watch O'Mara's exchange with Hammond at today's hearing HERE]

Senator O'Mara has served as the Ranking Member on the Senate Finance Committee since 2021. "We welcome this year’s budget hearings, at this critical time, for direct input and critique on a range of policy areas that will decide the short- and long-term future and strength of our local communities and economies.” said Senator O’Mara, who represents the 58th Senate District comprised of Chemung, Schuyler, Seneca, Steuben, Tioga, and Yates counties, and a part of Allegany County.