New York Governor Kathy Hochul has ordered the state Department of Health to explore ending the Medicaid social adult day care benefit. This directive coincides with a significant crackdown and multiple arrests targeting suspected fraud in both adult day care and auto insurance programs. The social adult day care benefit, which serves approximately 45,000 Medicaid members at an annual cost over $500 million, provides crucial daytime services in community settings. The governor's office stated that the investigation into Medicaid fraud has been ongoing for months, involving state and federal agencies. Specifically, the adult day care fraud sweep targeted providers suspected of money laundering, kickbacks, and improper billing. At a press conference announcing these actions, Governor Hochul vowed to hold fraudsters accountable. Separately, 16 arrests were made in connection with a large auto insurance fraud scheme, aiming to reduce high insurance costs for New Yorkers. The state is now requiring health plans to review adult day care claims before payment and to pursue suspensions of payments. A moratorium on new adult day care providers, initially set to expire in 2027, may be extended. Previous audits revealed significant questionable payments and instances of centers continuing to receive funds even after being terminated for fraud. One audit highlighted a center billing for significantly more participants than its legal capacity. The state Health Commissioner will advise the governor on the best path forward for accountability and participant care. Governor Hochul emphasized her commitment to protecting the integrity of Medicaid programs.