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California and the federal government battle over hospice fraud, as victims lose coverage and care
State regulators revoked nearly 500 licenses as federal officials removed more than 1,000 hospices from Medicare since early 2025.
California has revoked nearly 500 hospice licenses since 2021 amid intensifying crackdowns on fraud, with federal officials estimating Los Angeles County alone accounts for $3.5 billion in fraudulent claims.
Fraudsters often steal Medicare numbers to enroll unsuspecting victims in fake entities like Fortuna Hospice Inc., blocking them from receiving outside medical care because Medicare halts payments once hospice enrollment occurs.
California Attorney General Rob Bonta reported 21 arrests in a multimillion-dollar identity theft scheme, while his office has filed more than 100 hospice-related criminal cases and secured over 50 convictions since 2021.
The Trump administration has removed more than 1,000 hospices from Medicare since early 2025, while federal prosecutors charged fraudsters responsible for $6.5 billion in false claims across healthcare programs.
Critics argue the administration's fraud-busting efforts disproportionately target Democrat-run states, though officials like Dr. Mehmet Oz defend the crackdown as essential to protect patients from criminal enterprises like the "Russian Armenian mafia.