DiNapoli defends record on Medicaid fraud in comptroller debate

Both candidates for state comptroller got spirited over wasteful Medicaid spending, high utility bills, AI, prediction markets and more Thursday night in their sole debate before Election Day. 

State Comptroller Tom DiNapoli, a Democrat, and his Republican challenger Joseph Hernandez faced off for an hour on Spectrum News. Things got a little heated when the pair discussed Medicaid fraud. 

Hernandez accused DiNapoli of doing nothing to tackle the state’s elevated rate of Medicaid fraud and low number of related prosecuted cases.

"The fraud and abuse in New York is out of control. It is ridiculous. We have to do something about it,” Hernandez said. But DiNapoli defended his 20-year record, highlighting 55 arrests and $44 million in recovered funds since 2023. He accused Hernandez of fabricating statistics, and quipped back: “Your words are just rhetoric. I have a proven track record.”

DiNapoli, who handily won his first-ever primary challenge earlier this year, also defended recent changes to improve benefits for state employees on the Tier 6 pension system, and said he thinks the state needs stronger regulations to prohibit political donations from vendors interested in state contracts. 

Hernandez questioned DiNapoli about $850,000 in donations from law firms that work with the state pension fund. “You're very quiet about these pay-to-play issues,” he said. 

DiNapoli challenged Hernandez to prove any quid pro quo, but would not defend Gov. Kathy Hochul and the Legislature's past decisions to award state contracts, like for a multi-billion-dollar Medicaid program, without comptroller oversight. "That was a mistake, it shouldn't have happened that way," DiNapoli said.

Dinapoli backs Hochul's data center moratorium, and wants to lean on further diversifying investments to insulate the state’s funds from a possible "AI bubble," while Hernandez wants the state to accelerate its investment in the industry instead of pumping the brakes.

Hernandez said prediction markets like Kalshi – that New York and other states have sued for illegal gambling – need to pay their fair share of taxes, while DiNapoli said the courts should decide.

In a rapid-fire question round, both candidates agreed they would not invest the pension fund in cryptocurrency, but are split on the state’s biggest threat: Hernandez said it’s the state’s high outmigration, but DiNapoli said it’s President Donald Trump.

DiNapoli is heavily favored in the statewide Nov. 3 election over Hernandez, a biotechnology investor who received less than 0.1% of the vote in the 2025 New York City mayoral race, running as an independent.