New York adult daycare centers bill Medicaid for 390% more seniors since 2018

Medicaid paid adult daycare providers $3.35 billion nationwide in 2024, with 17 percent of that total going to 375 facilities in New York state, more than any other state, a CBS News data analysis found. New York spending on social adult daycares nearly quadrupled from 2018 to 2024. The largest concentration is in Flushing, Queens, where 64 centers operate within a one-mile radius.

Spending and enrollment trends Enrollment growth far exceeded the increase in the local Medicaid-eligible senior population. From 2018 to 2024 the neighborhood's Medicaid-eligible senior population grew about 20 percent, while the number of seniors billed by the centers rose 390 percent.

The centers bill Medicaid for the equivalent of more than 90 percent of local Medicaid-eligible seniors. Services include meals, personal care, and social activities for seniors and people with disabilities.

Investigations and state response Federal and state investigations are underway into possible fraudulent activity at some New York centers, CBS News has learned. Potential federal action is anticipated. A New York State Department of Health spokesperson said the state has referred 387 centers for investigation since 2021, with a third elevated to the Office of the Attorney General.

The spokesperson added that the governor and department have taken steps to control costs and address abuses.